Barclays Downgrades XPeng (XPEV) to Equalweight

Barclays analyst Jiong Shao downgraded XPeng (NYSE: XPEV) from Overweight to Equalweight with a price target of $22.00 (from $30.00).

The analyst comments "XPEV reported solid Q2 results with revenues slightly ahead of prior estimates and operating expenses significantly below our expectations, driving losses about 20% narrower than our forecast. Despite solid results, XP provided Q3 vehicle delivery guidance significantly below (~40%) our prior estimate. Reasons cited by management include overall softer consumer sentiment, seasonality, competition. While management highlighted strong pre-order (deposit refundable) trend for G9 and the model is set to be formally launched in Sep and deliveries are to start in Oct, we consider the execution risks heightened with the company’s outlook heavily depending on the success of G9, which has not even been fully unveiled let alone test-driven by consumers. We also highlight that G9 is the first flagship SUV for XP as its current two flagship models (P7 & P5) are both sedans. Considering the risks, we move to the sidelines and wait for confirmation of G9 success. We downgrade the stock to EW (from OW); new PT of $22 (from $30)."

For an analyst ratings summary and ratings history on XPeng click here. For more ratings news on XPeng click here.

Shares of XPeng closed at $18.73 yesterday.

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