Mizuho issued positive comments on the electric vehicle sector on Thursday.
The Japanese firm said it believed the September quarter was mostly in-line. Even though supply and logistics are expected to remain a challenge in theEV sector, Mizuho continues to see strong demand with a multi-year electrification transition underway led by China.
After factoring in the recent deliveries updates from Tesla (TSLA), Nio (NIO), and Rivian Automotive (NASDAQ:RIVN) - analyst Vijay Rakesh and team forecast China EV penetration exiting the quarter could be close to 25% to 30% of auto sales.
"Despite some near-term challenges, we continue to see vertically-integrated EV companies TSLA, RIVN and NIO well-positioned with secular growth drivers as legacy auto OEMs struggle to balance ICE/EV portfolios."
Mizuho reiterated Buy ratings on Rivian (RIVN), Tesla (TSLA), and Nio (NIO). The price target on TSLA was trimmed to $370 and the PT on Nio was reduced slightly to $40.
Rivian (RIVN) fell 1.88% in early trading on Thursday, while Tesla (TSLA) was down 1.79% and Nio (NIO) shed 6.3%.