Xpeng (NYSE:XPEV) stock is on the move Friday after the electric vehicle (EV) company’s shares were downgraded by JPMorgan.
That downgrade has JPMorgan analyst Nick Lai dropping shares of the stock from a “neutral” rating to an “underperform” rating. To put that in perspective, the analysts’ consensus rating for XPEV stock is “reduce” based on 13 opinions.
In addition to that downgrade, Lai set a price target of $10 per share for XPEV stock. That represents a potential 33.5% downside compared to the stock’s prior closing price. It’s also below the analysts’ consensus price prediction of $12.24 per share for the stock.
Why the Bearish Stance on XPEV Stock?
Here’s what the JPMorgan analyst had to say about XPEV in a note to clients obtained by Seeking Alpha:
“While we admit XPeng’s G6 pricing is attractive and expect the company to see volume ramp up in 3Q/4Q where we now project ~39k/53k units, our full-year volume estimate is now 133k units, still shy of mgmt’s earlier ambition of ~30% yoy growth to 150k units in 2023.”
As far as stock movement goes today, some 311,00 shares of SPEV have changed hands as of this writing. That’s still a far way off from its daily average trading volume of about 15 million shares. Even so, XPEV stock is down 1.3% as of Friday morning. However, the stock is still up 47.7% year-to-date as of Thursday’s close.
There’s more stock market news that traders will want to read about down below!
We’re offering up coverage of all of the biggest stock market stories that traders need to read about on Friday! A few examples include why shares of Carvana (NYSE:CVNA), Sigma Additive Solutions (NASDAQ:SASI), and Kiora Pharmaceuticals (NASDAQ:KPRX) are in the news today. All of that info is ready for traders to read about at the following links!
More Friday Stock Market News
- Why Is Carvana (CVNA) Stock Down Today?
- Why Is Sigma Additive Solutions (SASI) Stock Down 40% Today?
- Why Is Kiora Pharmaceuticals (KPRX) Stock Down 7% Today?
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.
