XPeng price target lowered to $12 from $17 at Bernstein

Bernstein lowered the firm’s price target on XPeng to $12 from $17 and keeps a Market Perform rating on the shares. The firm notes XPeng reported 2023 Q4 earnings that saw a remarkable vehicle margin turnaround and losses narrowed, which were largely attributable to product mix enhancement, scale uplift, and lower raw material costs. Bernstein also points out that 2024 Q1 could see sequential improvement in vehicle margin from mix shift, but scale is expected to take a significant hit. And for the rest of the year, volumes and margin will remain challenged, despite strategies in place, the firm adds.