Bank of America Securities released a report stating that,Nio-SW(9866.HK) has improved sales, is expected to have better gross profit margins in the second half of this year, and its valuation is attractive. Therefore, we have upgraded the group's stock rating from "neutral" to "buy" and raised the target price to HK$202.
The bank stated that the group has a strong model cycle and order backlog, with the "ET7" model having begun shipping in March and the "ES7" expected to be launched in June with deliveries starting in August.
Bank of America also believes that,NioThe valuation is attractive, with the current price equivalent to a one-year forecast corporate value/sales ratio of 1.7 times, which is one standard deviation lower than the historical average.
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