Morgan Stanley has released a research report reiterating its "Overweight" rating on XPENG-W (09868) with a target price of HK$96. The report highlights the company's GX model as a crucial proof point for attracting investor confidence, emphasizing that the focus will be on management's ability to maintain product launch momentum in the second half of the year, effectively execute overseas expansion plans, and advance non-automotive business initiatives.

The firm indicated that initiatives related to embodied AI are poised to act as catalysts for a potential re-rating of the stock. Morgan Stanley further noted that XPENG-W's plans to launch the G9L and MONA L03/L05 models in the latter half of the year should help mitigate seasonal fluctuations in sales volume.

The bank maintains an optimistic outlook on the recovery prospects driven by the GX and other upcoming model cycles. It believes that, against a backdrop of overall industry softness, sustained sales growth should enhance earnings predictability and provide support for the stock's future performance.