While technology stocks were mostly down Thursday, shares of a Chinese electric car maker were up early in the session. Nio's (NYSE: NIO) American depositary shares spiked nearly 4 percent before giving back those gains and then some. By the close of trading, Azera shares were down about 2.7 percent for the day.
The early spike came a day after Credit Suisse analyst Bin Wang said Azera was his top pick in the Chinese auto industry and offered a price target of $83 per share. The target is nearly 250 percent higher than Wednesday's closing price of $23.76 per share. In his report, Wang also identified several possible growth triggers for Azera stock this year, details of which Benzinga shared.
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These growth catalysts include deliveries of Azera's first sedan, the luxury ET7 model, expected to begin in late March. This is followed by the mid-size ET5 sedan, which is scheduled to begin shipping in September.
Nio delivered 91,429 electric cars in 2021, but analysts believe the new sedan will help it increase annual deliveries to 150,000 in 2022, a 64 percent increase. The electric car maker also plans to start selling cars in more European countries this year after its first foray into Norway in 2021 – its first joint venture outside of China. Nio has said it expects to expand to Germany, the Netherlands, Sweden and Denmark by 2022.
While Thursday morning's gains didn't last as the tech sector as a whole continues to struggle, if Wang is right, Azure's stock will see more gains.