Jefferies: XPeng's supply issues overshadow abundant fourth-quarter catalysts, reiterates "Buy" rating.

Jefferies said in a research report that it has become more optimistic after hosting a non-deal roadshow for XPeng Group in Hong Kong, believing that supply issues are masking rich catalysts in the fourth quarter, while overseas profit contribution and AI upside are not fully reflected in the share price. It reiterated a "Buy" rating, with an H-share target price of HK$75.7 and an ADR target price of US$19.4. The bank said September deliveries are progressing in line with guidance of 37,900 to 44,000 units; full-vehicle gross margin in the second half is expected to be broadly flat versus about 12% in the second quarter, while overseas full-vehicle gross margin remains above 20%. IRON is planned to start mass production by the end of 2026, initially at more than 1,000 units per month, ramping up to several thousand units in 2027; Robotaxi is also approaching commercialization.