Xpeng Sheds 13% After UBS Warns Volkswagen, G6 Upside Is Already Factored in

Tiger Newspress2023-07-31

XPeng falls over 13% in morning trading after a 60% rally last week.

UBS downgraded Xpeng to a Neutral rating (From Buy) and raised their 12-month price target on the stock to $23.00 (From $12.00) after the carmaker announced a collaboration with Volkswagen.

“While we share the market's positive view on VW's investment and collaboration, and pricing competitiveness of G6's specs, we believe near-term upside catalysts have been priced in.” wrote analysts.

They believe that XPeng's 4.99% equity investment and technological partnership with VW serves as a testament to XPeng's prowess in vehicle intelligence and autonomous driving. Nonetheless, creating the two medium-size electric vehicles for VW, built upon G9's platform, will demand a minimum of three years to execute.

“While the VW collaboration will proceed over the next three years, the company remains vulnerable in a fiercely competitive market and needs to recover its profitability,” added analysts.

Due to the volume declines experienced in the first half of 2023 (H123) and the challenging mass-market competition encountered by older models, UBS decided to revise down their volume estimates for 2023 and 2024 by 26% and 14%, respectively. Consequently, UBS has also adjusted their projected topline figures for the same period, lowering them by 30% and 19%, and their net income estimates by 32% and 60% for 2023 and 2024, respectively.

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Comments

Chris Tan
2023-07-31
Chris Tan
UBS poor foresight 😁
1PC
2023-07-31
1PC
It's fine, 😊 already Took partial profits. Wait for the next discounts [LOL]

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Wait for the next discounts&nbsp;[LOL]&nbsp;","listText":"It's fine, 😊 already Took partial profits. Wait for the next discounts&nbsp;[LOL]&nbsp;","text":"It's fine, 😊 already Took partial profits. Wait for the next discounts [LOL]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/203877950349464","repostId":1170816627,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":15,"commentSize":2,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1170816627"}