XPeng price target raised to $12.50 from $12 at Morgan Stanley

Morgan Stanley analyst Tim Hsaio raised the firm’s price target on XPeng (XPEV) to $12.50 from $12 and keeps an Overweight rating on the shares. Tesla’s (TSLA) price cuts in China triggered broader price competition, which, together with weaker year-to-date sales post-stimulus, has pressured China’s EV names’ first half sales and margin. The firm has cut its earnings forecasts and adjusted price targets for the China "EV trio" to factor in a more challenging operating environment, but reiterates its Overweight ratings on the trio of XPeng, Nio (NIO) and Li Auto (LI) for their valuation, balance sheet strength, speed of innovation and model iteration.