---
title: "Morgan Stanley: Reiterates \"Overweight\" rating on XPENG-W, optimistic about AI layout and new car cycle"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280109953.md"
description: "JP Morgan reiterated its \"Overweight\" rating on XPENG-W, believing it presents an attractive buying opportunity in 2026. It is expected that fiscal year 2025 earnings will exceed market expectations by 50%-70%. XPeng achieved its first quarterly profit in the fourth quarter of last year, benefiting from sales growth and product mix optimization. The company's long-term strategy focuses on artificial intelligence and autonomous driving technology, and it is expected to accelerate overseas expansion and the launch of new models, with the stock price likely to be further revalued"
datetime: "2026-03-23T06:38:03.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280109953.md)
  - [en](https://longbridge.com/en/news/280109953.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280109953.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/280109953.md) | [繁體中文](https://longbridge.com/zh-HK/news/280109953.md)


# Morgan Stanley: Reiterates "Overweight" rating on XPENG-W, optimistic about AI layout and new car cycle

According to the Zhitong Finance APP, JP Morgan has released a research report stating that, based on non-GAAP standards, XPeng-W (09868) is expected to achieve annual profits in the fiscal year 2025 that exceed the bank's and market expectations by 50% to 70%, showing impressive performance. The group achieved quarterly profitability for the first time in the fourth quarter of last year, with a narrowed annual net loss, mainly benefiting from increased vehicle sales, optimized product mix, and positive contributions from non-automotive businesses (such as after-sales services, automotive finance, and Volkswagen technology service fees). The rating for XPeng's Hong Kong stocks and ADRs is maintained at "Overweight," with a target price of HKD 135 for the Hong Kong stock and USD 34 for XPeng (XPEV.US).

The bank stated that management detailed the group's long-term strategy centered on physical artificial intelligence and AI-enabled mobility technology during the earnings call, covering autonomous driving, humanoid robots, and high-performance computing capabilities. They also listed specific short-term catalysts for 2026, including accelerating overseas product layout, launching VLA2.0 assisted driving, implementing autonomous driving technology, mass production of humanoid robots, and new model cycles.

Morgan Stanley believes that XPeng and Nio-SW (09866) are the core recovery trade targets in the Chinese automotive industry and sees them as attractive buying opportunities for 2026. It is expected that with leading technology layout, strong new model cycles in 2026, continuous improvement in profitability, robust overseas growth momentum, and contributions from diversified businesses, XPeng's stock price is likely to be further revalued

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