Nio Stock Rises After Citi Ups Price Target and Adds to Upside Watch

Nio Inc (HK:9866) saw a boost in Hong Kong trading on Wednesday as shares climbed 3.5% to HK$55.70, outperforming the 0.9% rise of the Hang Seng Index. The rally came after Citi analysts raised the Chinese electric vehicle (EV) maker’s price target and included it in their 30-day upside catalyst watch.

Citi increased its price target for Nio’s Hong Kong-listed shares to HK$65.90 from HK$62.50, while maintaining a Buy rating. By adding the stock to its short-term catalyst watch, the brokerage signaled expectations of further rapid gains for the EV manufacturer.

The bullish call followed Nio’s unveiling of its third-generation ES8 SUV at a surprisingly low starting price, which analysts say could strengthen demand. Citi highlighted the company’s strong sales performance, particularly in its battery electric vehicle lineup, and noted that competitive pricing is likely to accelerate growth in the coming years.

Other investment banks, including Mizuho, Bank of America, and Nomura, also raised their price targets for Nio after the ES8 launch. However, unlike Citi, they kept Neutral ratings, citing ongoing risks tied to profitability pressures.

Earlier this week, Nio shares faced selling pressure as investors worried that lower pricing on the ES8 could further squeeze margins amid an intense price war in China’s EV sector. Those concerns were compounded by weaker-than-expected second-quarter results, which revealed a larger loss than market forecasts.

Despite these challenges, optimism remains high among some analysts who believe aggressive pricing strategies could secure long-term market share gains. With Citi’s upgraded outlook and inclusion in its upside catalyst watch, Nio stock could see renewed investor interest as the EV maker navigates a fiercely competitive industry.