Goldman Sachs upgraded Nio Inc. (NIO) to Buy from Neutral on Monday. The bank set a new price target of $7.00 per share, suggesting significant upside from recent levels. Nio shares rose in pre-market trading following the announcement.
Analyst Tina Hou cited a successful turnaround driven by the launch of the ES8 and ES9 models. Nio delivered 67% year-over-year volume growth in the first half of 2026. This expansion occurred despite a 14% contraction in China's domestic new energy vehicle market during the same period.
Goldman Sachs now forecasts a strong profit and free cash flow turnaround for Nio in 2026. The bank views the stock's recent decline as disconnected from improving company fundamentals. Analysts described the current valuation as attractive compared to industry peers.