JPMorgan downgrades XPeng to Underweight into earnings season

JPMorgan downgraded XPeng to Underweight from Neutral with a price target of $10, up from $7.50. The analyst expects the stock to pullback into the results season and believes it won’t deliver a “satisfactory margin” in the second half of 2023. The firm cautious going into the interim result season and revised down earnings forecasts for most car markers and dealers. Weak Q2 earnings should not be a surprise to investors considering the weak pricing environment, but the magnitude of the miss could still be, the analyst tells investors in a research note. JPMorgan expects the Street to follow its downward forecasts.