Xpeng (NYSE:XPEV) stock is falling hard on Monday after the electric vehicle (EV) company’s shares were hit with a downgrade.
Analysts at UBS are behind this downgrade, which drops XPEV stock from a “buy” rating to a “neutral” rating. For the record, the analysts’ consensus rating for XPEV shares is “reduce” based on 13 opinions.
Despite that downgrade, the UBS analysts increased their price target for XPEV stock from $12 per share to $23 per share. That only represents a 1.7% downside from its prior closing price. Also, it’s still better than the analysts’ consensus price prediction of $14.24 per share.
Why the Bear Stance on XPEV Stock?
Here’s what the UBS analysts said about Xpeng in a note to clients obtained by Investing.com:
“While we share the market’s positive view on VW’s investment and collaboration, and pricing competitiveness of G6’s specs, we believe near-term upside catalysts have been priced in. While the VW collaboration will proceed over the next three years, the company remains vulnerable in a fiercely competitive market and needs to recover its profitability.”
With this new rating and price target from UBS, shares of XPEV stock are seeing heavy trading today. As of this writing, more than 32 million shares of the stock have changed hands. That’s already well above its daily average trading volume of about 18.8 million shares.
XPEV stock is down 13.7% as of Monday morning. However, the stock is still up 98.3% since the start of the year.
Investors looking for more of the most recent stock market news will want to stick around!
There’s even more stock market news that traders need to know about on Monday! Among that is what has shares of Faraday Future (NASDAQ:FFIE), Carvana (NYSE:CVNA), and Nikola (NASDAQ:NKLA) stock on the move today. You can check out all of that news at the links below!
More Monday Stock Market News
- Why Is Faraday Future (FFIE) Stock Up Today?
- CVNA Stock Price Prediction: Is Carvana Really Worth Just $30?
- Nikola (NKLA) Stock Jumps on New Truck Order
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
