In a report released yesterday, Ming-Hsun Lee from Bank of America Securities reiterated a Buy rating on XPeng, Inc. ADR (XPEV – Research Report), with a price target of $27.00.
Ming-Hsun Lee has given his Buy rating due to a combination of factors including XPeng’s strong sales performance and promising future model pipeline. The company reported significant year-over-year and quarter-over-quarter sales growth in 4Q24, with sales figures aligning well with expectations. Despite a slight miss in gross profit margin, the vehicle margin showed a notable improvement, and the net loss was slightly better than anticipated due to gains from strategic acquisitions.
Looking ahead, XPeng’s robust model lineup is expected to drive substantial volume growth in 2025 and beyond. The successful launch and delivery of new models like the MONA M03 and P7+ have already shown impressive sales numbers. Additionally, the upcoming releases, including the facelifted G6/G9 and new versions of the P7, are anticipated to further bolster sales. These factors, along with an upward revision in sales estimates for 2025 and 2026, underpin the Buy rating and the increased price objective of USD 27.
In another report released today, DBS also maintained a Buy rating on the stock with a $32.00 price target.