Morgan Stanley Reaffirms ‘Overweight’ Rating on XPeng
Morgan Stanley analyst Tim Hsiao reiterated on September 26, 2025, an ‘Overweight’ rating and HK$108 price target on XPeng.
“We replace BYD Company Limited with XPeng in both our GEM and APxJ Focus Lists: XPeng has a robust model pipeline and is also identified as a leading AI adopter.
With successful launches of several new models and a strong pipeline, Tim Hsiao and team expect XPeng’s monthly sales to take off in 2025 and expand further in 2026, underpinned by the debut of its super electric hybrid system.
More meaningful margin improvement should materialize from 2025 when scale benefit of new models kicks in fully.
XPeng’s announcement of a strategic partnership with Volkswagen is likely to be a critical step for vehicle makers to move beyond the traditional business model and generate a new revenue stream mainly from software/service, which is higher-margin and recurring.”
The price target and rating on this page are the opinion of the issuing research firm and its analyst, not of Price Target. This page is published for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consider your own circumstances and consult a licensed financial adviser before making investment decisions.
This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.
