XPeng (XPEV) trades down following UBS Upgrade to Buy
Shares of XPeng (NYSE: XPEV) are down 3.55% in mid-day trading on Thursday after UBS upgraded the stock to a Buy rating (from Neutral) and cut the price target to $13.00 following an 84% YTD price decline. Even as investors have become generally bearish on XPEV following recent sales weakness and a disappointing G9 launch execution, UBS believes that the electric automaker can improve on both internal management and product lineups.
A UBS analyst wrote in a note “After a recently unimpressive G9 launch, XPeng restructured its marketing team, refocusing on user demands from an engineering angle. It will phase out the outdated David platform and add the F-platform and H-platform, on top of today’s Edward platform. We think the new SUV could learn the lessons of the G9, and its 2020-launched P7could be facelifted with optimized specs and improved cost competitiveness.”
UBS believes that XPeng can turn things around and still sees XPeng as China’s leading autonomous driving company, as they are the first to realize city navigated guided pilot.
By Michael Elkins | [email protected]