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XPeng’s Short-Term Valuation ‘Much More Compelling:’ Morgan Stanley -Breaking

by Mike Robinson

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© Reuters

Sam Boughedda

Investing.com — Xpeng Inc (NYSE:) shares are set to close Monday’s session with gains of around 5%, recouping some of the losses seen last week.

However, that fall has prompted Morgan Stanley analyst Tim Hsaio to add the stock as a research tactical idea, believing it will rise over the next 15-days because its short-term valuation has become “much more compelling.”

According to the analyst, this recent correction was caused by concerns about possible Chinese ADR delistings. Reports last week claimed that the U.S. government was moving closer to pulling Chinese companies off American exchanges because they failed to adhere to China’s disclosure requirements. 

Hsaio noted that XPeng is also listed in Hong Kong. This “should meaningfully hedge against the risk of disruptions to operations and access to funding.” Didi, a Chinese ride hailing app, suffered a significant decline in shares Friday as it announced that it would start the process of delisting from NYSE and will move to Honk Kong.

Hsaio is currently targeting HK$275 (around $35) and has an overweight rating on XPeng shares.

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