Damo: Xpeng Motors-W (09868.HK) expects non-automotive business to achieve greater growth in the next 3 to 5 years, raising target price to 131 Hong Kong dollars.

According to the Wisdom Financial APP, Morgan Stanley released a research report stating that it is expected that the sentiment of Xpeng Motors-W (09868.HK) will significantly improve starting from the middle of 2026. At that time, the company will begin large-scale production of physical artificial intelligence projects. Morgan Stanley mentioned that although the automotive business will still be Xpeng's main source of income from 2026 to 2027, non-automotive business will have greater growth potential in the next 3 to 5 years, offsetting increased competition in the domestic market and potential discounts on electric vehicle business due to growth saturation. The bank has raised the target price of Xpeng's H shares from 119 Hong Kong dollars to 131 Hong Kong dollars, maintaining a "buy" rating.