© Reuters. Bernstein Says XPeng (XPEV) Selloff is ‘Overdone’; Reiterates Outperform

By Michael Elkins 

Shares of Xpeng Inc. (NYSE:) are down 3.04% in pre-market trading on Thursday after Bernstein cut their price target on the stock to $20.00 while maintaining an Outperform rating.

Bernstein analysts see the company’s current risk-reward as “attractive.” The electric automaker recently launched their model G9 SUV to a lukewarm reception. However, they still believe that the electric SUV will still be meaningful to improving XPeng’s product mix and lift margin. The XPeng G9 starts at RMB310k, higher compared to XPeng’s current ASP of RMB200k.

The company currently trades at valuation multiples lower than those ascribed to traditional OEMs, including Great Wall and GAC. Despite that, XPeng has better topline growth and margin expansion prospects.

The analysts wrote in a note, “We think the stock selloff is overdone and we hold a more constructive view on the stock, considering valuation and fundamental outlook.”

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