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Investing.com — Xpeng Inc (NYSE:XPEV) shares are set to close Monday’s session with gains of around 5%, recouping some of the losses seen last week.
However, that fall has prompted Morgan Stanley analyst Tim Hsaio to add the stock as a research tactical idea, believing it will rise over the next 15-days because its short-term valuation has become “much more compelling.”
The analyst believes the recent correction is due to worries regarding potential Chinese ADR de-listings. Last week, reports said the U.S. government moved closer to removing Chinese companies from American exchanges for not adhering to the country’s disclosure requirements.
With XPeng also listed in Hong Kong, Hsaio said it “should meaningfully hedge the risk of disruption to operations and funding access. Chinese ride-hailing app Didi saw its shares decline significantly Friday after it said it would begin the delisting process from the NYSE and move to Honk Kong.
Hsaio currently has a HK$275 price target (about $35) and an overweight rating on XPeng shares.
