Big Bank report: Xiao Peng (09868.HK) may still face the risk of competition from Huawei Luxeed S7.
Morgan Stanley published a research report that car orders for XPEV.US (09868.HK) slowed month by month, but orders still exceeded deliveries, with total new orders remaining at more than 20, 000 in October. While a large backlog of orders and increased production should support the stock's recent good sales momentum, competitive risks from Huawei Luxeed S7 may still exist.
The bank expects Xiaopeng's share price to continue to fluctuate in the short term and needs more specific data to support its gross margin and sales outlook for the fourth quarter and beyond. The bank believes that as there will be no major product launches in the short term, the sustainability of G6 orders and the additional impetus of G9 and LFP-P7i will be critical to enhance the Group's sales momentum in the first half of 2024 when supply bottlenecks are eliminated.
The bank gave the group an "overweight" rating, with a target price of $25.4 for US stocks.
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