While JPMorgan got more bullish on the name and upgraded the stock to Neutral, UBS downgraded Xpeng but to a Neutral rating as well. JPMorgan upgraded XPeng to Neutral from Underweight with an $18 price target after the shares rallied on the unexpected announcement of Volkswagen's (VWAGY) $700M investment and strategic partnership between the two companies. The firm believes XPeng's long-term equity story "has now fundamentally changed" and will outweigh investor concerns on its near-term margin shortfall and financial stress. However, JPMorgan believes it remains too early to call for an outright Overweight at this stage considering business execution and the broader industry headwinds pertaining to competition. Meanwhile, UBS downgraded XPeng to Neutral from Buy with a $23 price target, citing valuation following the stock's 192% rally since November 2022. While positive on the Volkswagen investment and collaboration, the firm believes XPeng's near-term upside catalysts have been priced in.