Jeff Chung, an analyst from Citi, maintained the Buy rating on XPeng, Inc. ADR (XPEV – Research Report). The associated price target remains the same with $29.00.
Jeff Chung has given his Buy rating due to a combination of factors that indicate a positive outlook for XPeng, Inc. The company’s fourth-quarter gross profit margin slightly exceeded expectations, and its EBIT margin showed significant improvement both quarter-over-quarter and year-over-year. Additionally, XPeng’s net cash level saw a substantial increase, attributed to a rise in accounts payable and positive operating cash flow in the second half of 2025.
Looking forward, XPeng anticipates further improvements in its gross profit margin, driven by cost reductions and changes in revenue mix. The company is also planning several new model launches, which could help maintain revenue growth momentum. If these conditions persist, XPeng may reach a breakeven point by the fourth quarter of 2025 with positive free cash flow. Despite potential challenges from competitors like BYD and Leapmotor, XPeng’s strategic initiatives and financial improvements underpin Jeff Chung’s optimistic Buy rating.
In another report released today, DBS also maintained a Buy rating on the stock with a $32.00 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.