Morgan Stanley maintains its "overweight" rating on Xiaopeng, with a target price of $26.

On May 21, after Xiaopeng Motors released its Q1 2025 financial report, Morgan Stanley maintained its "overweight" rating on Xiaopeng's stock and set a target price of $26. Morgan Stanley believes that Xiaopeng is showing signs of "structural repair" and "clarity in profit path." The strong pace of product delivery, the rebound in gross profit margin, and ample cash flow collectively enhance the feasibility of its continued investment in AI and intelligent driving, maintaining an optimistic assessment of the company's medium to long-term growth potential.