NIO Inc. (NYSE: NIO) stock jumped over 5% on Monday, echoing the surge in multiple Chinese stocks amid several promising developments.
Several China-based stocks surged on Monday following the conclusion of the National People’s Congress event that began on March 5.
According to reports from Bloomberg, the surge in Chinese stocks came after China announced its 2024 economic growth target of 5% during the conference, aligned with market expectations. The general sentiment surrounding the conference remained positive, with few drawbacks reported.
Reuters reports that the CPI in China rose 0.7% year-over-year in February, marking the first increase in consumer prices in six months. This figure, surpassing economist estimates of 0.3%, potentially alleviates deflation worries.
Prices saw the sharpest increase in 11 months on a year-over-year basis, driven by rises in certain essential food items and heightened travel activity during the Lunar New Year last month, which contributed to bolstering the index. However, cautionary notes from analysts suggest that a complete economic recovery might still be pending.
Zhiwei Zhang, the president and chief economist at Pinpoint Asset Management, stated,
“It is too early to conclude that deflation in China is over. Domestic demand is still quite weak. Property sales of new apartments have not stabilized yet.”
Meanwhile, Tim Hsiao, an analyst at Morgan Stanley, maintained an Overweight rating on Nio on Monday while reducing the price target from $13 to $10. This decision followed a series of price target cuts by multiple analysts last week in response to Nio’s fourth-quarter financial results. While Nio reported a 25% year-over-year increase in fourth-quarter deliveries, there was a 9.7% decline from the third quarter. In addition, the company guided for first-quarter deliveries ranging from 31,000 to 33,000 vehicles.
NIO Inc. (NYSE: NIO) Stock Performance
NIO stock surged 5.17% to close at $6.10 on Monday. The traders had exchanged hands with 63,741,981 (63.74 million) shares compared to the average daily trading volume of 64.51 million.
