Tesla Inc. stock and American depositary shares of Nio Inc. got price-target increases on Monday, with Wall Street emphasizing the electric-car makers’ tech-company side.
B. of A. analysts raised their price target on Tesla TSLA,
“(Tesla) stock is driven by growth afforded by valuation,” the analysts, led by John Murphy, said in a note.
“The higher the upward spiral of (Tesla’s) stock goes, the cheaper capital becomes to fund growth, which is then rewarded by investors with a higher stock price. The inverse of this dynamic is also true, and it is this self-fulfilling framework that appears to explain the extreme moves in (Tesla) stock to the upside and downside,” the analysts said.
Tesla shares took a breather on Monday following an unprecedented 11-day winning run in previous days. The stock is up 776% in the past 12 months, compared with gains around 17% for the S&P 500 index SPX,
Nio ADRs rallied on Monday, trading as high as $66.89 earlier and up nearly 9% at last check. A close higher would be a second straight record high for Nio.
The company held a “Nio Day” on Saturday, unveiling a new luxury sedan, the ET7, and showcasing its technological advances. The ET7 and its autonomous driving capabilities will feature Nvidia Corp.’s NVDA,
The “Nio Day” reveals led analysts at JPMorgan to increase their price target on the ADRs to $75, from $50, and “sustain our view that Nio will continue to trade more like a fast-growth technology/EV stock than a carmaker,” the analysts said. They kept their rating on Nio’s ADRs at their equivalent of buy.
Nio’s ADRs have gained more than 1,700% in the past 12 months.
