Nio stock price inched up in Wednesday’s New York trading session trading at $3.45 after gaining 0.15% to recoup some of the losses incurred the previous day. Despite its latest gains, the momentum underlying the stock is largely bearish-leaning, having declined 6.2% in the last five trading sessions. In addition, Nio (NYSE: NIO) is down by 13.3% in the last month.
Despite its current troubles, Nio stock price has been recently upgraded by Goldman Sachs from “SELL” to “NEUTRAL”, with the price target hiked from $3.70 to $3.80. That implies a 10% upside from the current level, and could encourage more investors to buy. According to Goldman Sachs, the improved outlook is attributable to the company’s cos-cutting measures and improved offerings which have broadened its market reach and could increase margins.
Notably, Nio has upped the tempo on its European market expansion strategy, with a distributor sales model expected to help it reach more customers. However, competition back home in China is tightening, with the likes of BYD, LI Auto, Xpeng and Tesla involved in aggressive marketing and incentivization. On the technical front, the Nio stock trading volume has declined below the 50-day average, signaling weakening investor appetite.
Nonetheless, cost-cutting measures highlighted by Goldman Sachs such as reduced employee numbers and project cuts could help improve margins, amid the production of more cheaper models targeting the mass market. That could improve the performance of Nio stock price in the medium-term.
Nio Stock Price Prediction
The momentum on Nio stock price favours the upside to continue above $3.44. That will likely see initial resistance encountered at $3.49. However, the action could go higher and test $3.54 if the buyers stay in control for a longer period.
On the downside, the momentum could favour the sellers if the rice breaks below $3.44. With the sellers in control, the stock will likely find initial support at $3.40. Breaking below that level will invalidate the upside narrative. In addition, an extended control by the sellers could strengthen gains and test $3.34.
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