XPeng Gets A Price Target Hike From Morgan Stanley, Retail Wonders What Happened To Short Sellers
Synopsis
The new price of $28 target implies a 37% upside to the stock’s closing price on Wednesday.
Morgan Stanley on Thursday raised its price target on XPeng (XPEV) to $28 from $26 while keeping an ‘Overweight’ rating on the shares.
The new price target implies a 37% upside to the stock’s closing price on Wednesday.
Constant competition and year-to-date stock outperformance "may aggravate near-term volatility," Morgan Stanley noted. However, the firm stays constructive on XPeng's model pipeline and AI-related initiatives.
Morgan Stanley views the G7, powered by the in-house developed AI Turing chip, which XPeng launched at a pre-sale price of RMB235,800 ($32,781), as "just the first step in pioneering a breakthrough," the analyst said.
XPeng unveiled the G7, an all-electric mid-size SUV, on Wednesday. The company plans to start delivering the vehicle in the third quarter. It will compete against the Tesla Model Y, which starts at RMB263,500 in the Chinese market.
The company also launched the Max variant of its all-electric hatchback sedan, MONA M03, in China late last month.
The company is now looking to launch the new P7 electric sedan later this year in the third quarter.
Last month, XPeng said that it expects to deliver between 102,000 and 108,000 vehicles in the second quarter, representing a 257.5% year-on-year (YoY) increase.
On Stocktwits, retail sentiment around XPeng rose from ‘bearish’ to ‘neutral’ over the past 24 hours while message volume remained ‘low.’
A Stocktwits user noted how Thursday’s developments would have taken short sellers by surprise.
According to data from Koyfin, 21 of 28 analysts covering XPeng rate it a ‘Buy’ or higher, while six rate it a ‘Hold’ and one rates it a ‘Strong Sell.’ The stock has an average price target of $25.32.
XPEV stock is up by about 68% this year and has risen nearly 159% over the past 12 months.
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