Here's Why This Analyst Sees Sharp Upside In XPeng, NIO, Li Auto

• China Renaissance analyst Yiming Wang initiated coverage on XPeng Inc (NYSE:XPEV), NIO Inc (NYSE:NIO), and Li Auto Inc (NASDAQ:LI).
• The analyst notes that the Chinese emerging EV automakers embraced a new rapid growth stage after being undervalued in 2019 and 2020. 
• Wang initiated XPeng with a Buy and $55.60 price target (94% upside), citing it as the sector's top pick. 
• The analyst notes XPeng owns China's leading self-driving technology and has a pricing advantage. 
• Wang initiated NIO with a Buy and a $32.40 price target (50% upside). 
• NIO is well-positioned in high-end EVs and expects incremental revenue from its upcoming NAD software launch, the analyst notes.
• Wang initiated Li Auto with a Buy and $37.20 price target (38% upside). 
• Wang considers Li Auto has an edge in vehicles with a more extended driving range at a lower cost.
• Price Action: NIO shares traded lower by 1.26% at $21.60, XPEV shares traded lower by 1.72% at $28.58, and LI is down by 1.04% at $27.00 on the last check Thursday.