Citi cuts XPeng target, opens ‘negative catalyst watch’

Citi analyst Jeff Chung lowered the firm’s price target on XPeng (XPEV) to $13.70 from $14.60 and keeps a Neutral rating on the shares. The firm also opened a “90-day negative catalyst watch” on the share. Citi sees Q4 downside margin risk on expected sharp vehicle selling price decline quarter-over-quarter with “poor” sales mix on the Mona ramp-up. It also sees potential new order decline from the second week of November on subsidy phaseouts. XPeng’s Q4 volume growth has been priced in from now, the analyst tells investors in a research note.