Morgan Stanley Positive on XPeng (XPEV) Post Earnings, 'March sales will likely grow to 8.2-9.7k units'
Morgan Stanley analyst Tim Hsiao reiterated an Overweight rating and $18.00 price target on XPeng (NYSE: XPEV)
The analyst comments "XPeng's net loss narrowed to Rmb1.35bn in 4Q23 (vs. Rmb3.9bn in 3Q23), better than our expectation of an Rmb2-2.2bn loss: 4Q revenue rose 53% QoQ to Rmb13.05bn, at the midpoint of its Rmb12.7-13.6bn guidance, with mild ASP expansion thanks to the rising G9 mix. Vehicle gross margin improved 10.1ppt QoQ to 4.1%, returning to positive territory. R&D remained flat QoQ, SG&A rose 14% QoQ; OpM narrowed to -16%, the best quarter ever since IPO. Non-op gain contributed a major upside surprise – XPeng recorded Rmb352mn of other income, due to gov't subsidies and Rmb560mn of fair value gain on derivative liability. 1Q volume guidance of 21-22.5k units was in line with reduced expectations after a slow start this year: This suggests March sales will likely grow to 8.2-9.7k units. XPeng now anticipates a total revenue decline of 52-56% QoQ, to Rmb5.8-6.2bn, with a double-digit ASP increase, driven by the X9 ramp-up. New model launches, order in-take, and margin trend will be key focus points for investors in 1Q."
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Shares of XPeng closed at $9.82 yesterday.