UBS downgrades XPeng to Neutral, says catalysts priced in

UBS analyst Paul Gong downgraded XPeng (XPEV) to Neutral from Buy with a $23 price target. The analyst cites valuation for the downgrade following the stock’s 192% rally since November 2022. While positive on the Volkswagen (VWAGY) investment and collaboration, the analyst believes XPeng’s near-term upside catalysts have been priced in. The company remains “vulnerable in a fiercely competitive market” and needs to recover its profitability, the analyst tells investors in a research note.