Following JP Morgan's bullish report two weeks ago, another Wall Street firm Morgan Stanley also joined the ranks of updating their views on Chinese EV maker NIO (NYSE: NIO).
In a report titled "A strong EV leader in the making" published on October 28, Morgan Stanley analyst led by Tim Hsiao revised up forecasts on better-than-expected Q3 deliveries, upside potential to margin, and an update of our assumptions behind NIO's vehicle and long-term take rate of NOP.
The bank stays Overweight on NIO and raised its price target to $33, up by 61% from $20.5.
The report said although they've been positive on NIO's operational breakthrough, findings from data points since 2Q results and their recent EV trip suggest the pace of NIO's progress in achieving its strategic and investment ambitions is tracking ahead of our expectations on all fronts.
Meanwhile, the capital market's willingness to finance NIO's innovations and investments could unleash more operational upside in the next 18-24 months, the report said.