Benzinga | Jan 12, 2022 10:20AM EST

Macquarie Initiates Coverage On Nio, XPeng With Outperform Rating

* Macquarie analyst Erica Chen initiated coverage on Nio Inc (NYSE:NIO) with an Outperform rating and $37.70 price target, implying a 22% upside.

* Chen noted Nio is the earliest electric vehicle start-up in the market with a focus on the affordable luxury auto segment and customer service.

* The analyst forecasts 31% annual electric vehicle unit sales growth for China and 52% annual revenue growth for Nio through 2024.

* Chen added battery swapping is one of the means for energy replenishment and Nio is a "big supporter of this business model, which is promoted by the China government."

* Chen initiated coverage on XPeng Inc (NYSE:XPEV) with an Outperform rating and HK$221 price target.

* Price Action: NIO shares traded higher by 3% at $30.92, and XPEV higher by 3.73% at $47.47 on the last check Wednesday.