XPeng downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Nick Lai downgraded XPeng to Neutral from Overweight with a price target of $9, down from $11. The reopening trade in autos is "playing out rapidly and could run out of steam in near term," Lai tells investors in a research note. The market appears to be rapidly pricing in a 2023 recovery scenario as economic momentum resumes, but the recent rally "has priced in a rosy scenario while corporate earnings and underlying industry data are still lagging," says the analyst. Lai cites valuation and potential for estimate cuts for the downgrade of XPeng.