JP Morgan: Adds XPeng to the positive catalyst watch list, H-share target price raised to HKD 65

JP Morgan released a report stating that XPeng's stock price rose 16% last Friday, benefiting from its annual technology day, and thus added the company to its positive catalyst watch list. The previous report detailed the company's key initiatives and product strategies, and it was pleasantly surprised by the market's reaction to the newly launched P7+, which is attractively priced at 186,800 yuan, leading to strong orders. JP Morgan indicated that the recent catalyst is the third-quarter results on November 19, expecting gross margins to expand while marketing, general, and administrative expenses remain flat. The firm anticipates that management will guide for fourth-quarter deliveries of 80,000 units. As for 2025, the firm expects XPeng to record a sales growth of 119%, reaching 392,000 units. Additionally, it forecasts that P7+ sales will reach 10,000 units in December, with total sales for 2025 reaching 124,000 units, and expects management to provide more details about new models for next year during the earnings call. The firm raised its revenue forecast for the company in 2025 by 10% to reflect its positive view on the competitiveness of the P7+ product, expecting sales for the fiscal year 2025 to reach 392,000 units. The target price for H-shares was raised from HKD 60 to HKD 65, and the target price for US stocks was raised from USD 16 to USD 17, reiterating the "Overweight" rating