Shares of Niu Technologies jumped 17.4% on Friday after the Chinese electric scooter maker reported strong sales figures for 3Q. The company said it sold 250,889 e-scooters during the quarter, reflecting a robust 67.9% increase from the year-ago quarter. Moreover, its total deliveries in the first three quarters of 2020 urged 43.2% to 451,187 units on a year-over-year basis.
Niu Technologies (NIU) said that its 3Q deliveries in the Chinese market grew 70.2% to 245,293 unit year-over-year, mainly driven by new products including G0, MQi2 and MQiS. The company shipped 5,596 e-scooters to international markets which reflects a 6.3% increase from the year-ago quarter.
Niu said, “The growth in the international markets was mainly driven by the demand recovery in July and August after the severe impact from COVID-19 in the second quarter. The growth was however negatively affected again by the rebound of COVID-19 since September.” (See NIU stock analysis on TipRanks).
Following the company’s 3Q sales data release, Needham analyst Brad Erickson raised the stock’s price target to $30 (10.9% upside potential) from $23 and reiterated a Buy rating saying that numbers exceeded his expectations. In a note to investors on October 9, Erickson wrote, “We remain bullish on Niu’s ability to capture more market share in lower-tier cities & lower ASP [average selling price] markets, evidenced by its successful G series products roll-out.”
Currently, the Street has a cautiously optimistic outlook on the stock with a Moderate Buy analyst consensus. With shares up over 217% year-to-date, the average price target of $26.75 implies a downside potential of about 1.1% to current levels.
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