XPeng (XPEV) PT Lowered to $18.70 at HSBC 'on lower long-term earnings estimates'

HSBC analyst Yuqian Ding lowered the price target on XPeng (NYSE: XPEV) to $18.70 (from $20.40) while maintaining a Buy rating.

The analyst commented: "4Q23 results beat our expectation mainly on improving gross margin given cost optimisation and mix upgrade. Joint procurement with VW likely to further benefit gross margin, but higher mass market product mix could dilute margin in the long term. Maintain Buy ratings on both US/H-shares with lower TPs. We continue to value the stocks on DCF and lower our US/H-shares TPs to USD18.70 (from USD20.40)/ HKD73.00 (from HKD79.40), mainly on lower long-term earnings estimates given potentially higher mass market product mix in the future (see page 4 for details). With c89%/83% upside from current levels, we maintain our Buy ratings on XPeng's US-listed ADRs and H-shares."

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