Morgan Stanley: Reiterates "Overweight" rating on XPENG-W (09868), target price raised to 66.4 Hong Kong dollars.

Morgan Stanley has released a research report stating that it has reiterated its "overweight" rating on XPENG-W (09868) to capture the next AI trend, with the target price raised from HK$45.6 to HK$66.4. The company delivered a total of 122,500 smart electric vehicles in the first ten months of this year, reaching 87% of the bank's previous full-year forecast. Based on driving factors and some unfavorable factors such as short-term supply constraints and seasonal factors, the bank has raised its delivery forecast for XPeng from 2024 to 2026 by 13% to 29%, higher than market expectations. Morgan Stanley expects XPeng to showcase its multiple technological reserves starting from this year's AI Day, and to continuously expand the production capacity of vehicle and non-vehicle product lines. In the intense competition of smart electric vehicles, XPeng may continue to enhance its competitive advantage.