Eunice Lee, an analyst from Bernstein, maintained the Hold rating on XPeng, Inc. ADR (XPEV – Research Report). The associated price target was raised to $18.00.
Eunice Lee has given her Hold rating due to a combination of factors influencing XPeng, Inc. ADR’s current market position. Despite XPeng’s impressive Q4 performance, with revenue and delivery volumes showing significant year-over-year and quarter-over-quarter growth, there are concerns about the sustainability of this momentum. The company has managed to improve its gross and vehicle margins through cost reduction and scaling efforts, yet the average selling price has declined, which could impact future profitability.
Additionally, while XPeng’s guidance for Q1 2025 indicates strong year-over-year growth in revenue and sales volume, the expected monthly sales for March appear flat compared to earlier months, suggesting potential challenges in maintaining growth. The stock’s significant rise of over 100% year-to-date also raises the possibility of profit-taking, which could affect its near-term performance. These factors collectively contribute to the Hold rating, reflecting a cautious outlook despite the company’s positive trajectory.
In another report released today, Daiwa also downgraded the stock to a Hold with a $24.00 price target.
XPEV’s price has also changed dramatically for the past six months – from $8.640 to $22.640, which is a 162.04% increase.