XPeng’s Positive Financial Trajectory and Strategic Growth Justify Buy Rating

Analyst Jeff Chung of Citi maintained a Buy rating on XPeng, Inc. ADR (XPEV – Research Report), retaining the price target of $29.00.

Jeff Chung has given his Buy rating due to a combination of factors including XPeng’s financial performance and strategic outlook. The company’s first-quarter earnings for 2025 showed a significant improvement in net loss compared to the previous year, aided by government subsidies and favorable foreign exchange gains. This financial performance was in line with or slightly ahead of market expectations, indicating a positive trajectory.
Additionally, XPeng’s cash position has strengthened, with an increase in net cash due to revenue growth and effective working capital management. The expansion of its sales network and charging facilities further supports its growth potential. The company also has an ambitious target for vehicle sales in the second quarter, and the anticipated launch of a new product is expected to act as a catalyst for future growth. These factors collectively justify the Buy rating, with an expected share price return of 30.9%.

In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $29.00 price target.