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<Research>Citi Upgrades XPENG-W (09868.HK) to Neutral, Elevates TP to $32.2
Recommend 10 Positive 23 Negative 7 |
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Citi Research commented in a report that the expected prolongation of future model product cycles and consolidation in the automotive market, which may continue until 2031, could lead to a recovery in the return on equity of major carmakers from 2H25 to early 2029. Contrary to IHS's forecast of local brand market share reaching a high of 63.9% by 2025 and stabilising at 62% by 2031, Citi expected local brand market share to reach 66% by 2025 and further expand to 78% by 2031. Citi also forecasted market consolidation and concentration to occur faster than IHS expected due to a more aggressive export drive. Among new energy vehicle makers, the broker noted that BYD COMPANY (01211.HK) and XPENG-W (09868.HK) are the only ones whose product lifespans will be reduced YoY in 2025. By that year, the lifespan of hybrid car products will be about 23 months, much lower than the average of 37 months for traditional automakers. The broker expected BYD, LI AUTO-W (02015.HK), SERES (601127.SH) and ZEEKR (ZK.US) to have higher market shares in 2026 than in 2024. Citi upgraded its rating on XPENG from Sell to Neutral and raised its H-share target price from $29.9 to $32.2. AAStocks Financial News |
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