Morgan Stanley raises XPeng's target price to 195 yuan in one go, expects AI layout to drive stock price from the second quarter of next year

JP Morgan's research report indicates that XPeng-W (09868.HK) stock price has more than doubled year-to-date, mainly due to market expectations that the company will turn profitable starting in the fourth quarter. The bank believes that the next wave of major growth from 2026 to 2027 will come from the company's recently announced AI initiatives, including Robotaxi, humanoid robots, and flying cars, all driven by the company's self-developed AI.

The bank stated that although these new initiatives will not contribute significantly to revenue until the second half of 2026 or even later, and the market has not fully estimated the company's prospects for 2027, it believes that as the visibility of the technology improves, the company's stock price will actively reflect its AI vision starting in the second quarter or second half of next year. In pessimistic, base, and optimistic scenarios, the bank expects potential upside of 85%, 120%, and 200%, respectively.

The bank is now using the pessimistic scenario as a benchmark, significantly raising the target price for Hong Kong stocks from HKD 100 to HKD 195, and the target price for XPeng's US stock (XPEV.US) from USD 25 to USD 50, both with an "overweight" rating