Morgan Stanley says Cyvn investment, model debut should bolster Nio stock

Morgan Stanley says that additional investment from Cyvn,its current shareholder and an investment vehicle majority owned by the Abu Dhabi government focusing on smart mobility, should reinforce Nio‘s cash reserve for its launch of sub-brand ALPS. This, together with new model debut at Nio Day, should bolster near-term stock performance, yet vehicle sales resurgence still holds the key to more meaningful stock re-rating, the firm argues. Morgan Stanley notes that following completion of the deal, Cyvn will own approximately 20.1% of Nio’s total issued and outstanding shares. The firm has an Overweight rating on Nio with a price target of $18.70 on the shares.