0850 GMT - XPeng is not likely to reach full-year profitability by 2026, Bernstein analysts write in a note. The company's strong 3Q earnings beat expectations, thanks to robust sales and record margins, but its 4Q gross margin could be challenged by a weaker product mix from a strong Mona M03 delivery, they say. Bernstein now forecasts XPeng's 4Q gross margin at 14.5% and full-year gross margin at 14.8%. The EV maker's two new models were priced very competitively and have strong order backlogs, but analysts have concerns over margin dilution, especially from Mona. Challenges related to execution and supply chains may also pose risks for fulfilling orders, they add. Bernstein maintains a market-perform rating for the stock, while upgrading its target price for ADRs to $14.00 from $9.00 and its Hong Kong-listed shares to HK$54.00 from HK$35.00, respectively. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
November 20, 2024 03:50 ET (08:50 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.