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."

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 $9.82 yesterday.

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