XPEV - XPeng falls after Baird downshifts to Market Perform rating
2023-03-24 09:50:41 ET
Baird lowered its rating on XPeng ( NYSE: XPEV ) to Market Perform from Outperform on Friday.
Analyst Eunice Lee warned that the Chinese electric vehicle maker will face rising competition that could impact sales for P7, G9, G3i, and P5 models. The lower-than-expected volume and pricing war that is breaking out is expected to impact margins negatively.
While XPeng ( XPEV ) is given credit for its organizational restructuring and cost reduction efforts, those efforts are not anticipated to feed the bottom until late in 2023 or 2024.
Baird assigned a lowered price target of $12.00 to XPEV.
Shares of XPeng ( XPEV ) fell 1.72% in early trading to $9.74.
On Seeking Alpha, contributor Mobility Matters Research recently warned on execution risk for XPeng ( XPEV ) with some of management's aggressive goals.
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XPeng falls after Baird downshifts to Market Perform rating