Morgan Stanley raised its price targets on China's electric vehicle (EV) trio -- Nio (NYSE: NIO), Xpeng (NYSE: XPEV), and Li Auto (NASDAQ: LI) -- as a lackluster first half passes and investor sentiment improves recently.
"The lackluster 1H23 is now behind us, and we are starting to see an inflection point of meaningful operational improvement and potential re-rating opportunities, backed by volume upturn, policy tailwinds, autonomous driving and technology monetization," Morgan Stanley analyst Tim Hsiao's team said in a research note sent to investors yesterday.