Bernstein analyst Eunice Lee has maintained their neutral stance on XPEV stock, giving a Hold rating yesterday.
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Eunice Lee’s rating is based on XPeng’s recent financial performance and future outlook. The company reported a significant increase in Q2 revenue and sales volume, driven by an improved product mix and cost reductions. However, despite these positive developments, XPeng still recorded a net loss, although the loss margin has narrowed compared to previous quarters.
Looking ahead, XPeng has provided optimistic guidance for Q3, with expectations of substantial revenue and sales volume growth. The company is also aiming for a break-even profit by Q4, contingent upon the successful execution of new product launches. While these factors indicate potential for future growth, the current financial challenges and execution risks justify a Hold rating, as the stock’s valuation appears to be fairly priced at this stage.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $20.50 price target.