Shares of NIO (NYSE: NIO) were on an upswing on Monday as the Chinese automaker through its subsidiary, Blue Northstar Limited snapped up a 12.2% stake in an Australian lithium company, Greenwing Resources for A$12 million.
As a part of this strategic agreement, NIO will subscribe to 21.8 million shares of Greenwing for a deemed issue price of A$0.55 per share. NIO will also have a right to a nominee on Greenwing’s Board of Directors so long as it continues to hold at least 10% of the company’s shares.
Is NIO Stock a Buy, Sell or Hold?
Wall Street analysts are bullish about NIO with a Strong Buy consensus rating based on nine unanimous Buys. The average stock price forecast for NIO of $30.51 implies an upside potential of 67.3% at current levels.
