Written by Cláudio Afonso | LinkedIn | X
Goldman Sachs analyst Tina Hou raised on Friday the firm’s price targets on Chinese electric vehicle makers Nio and XPeng in both their U.S.- and Hong Kong-listed shares, while maintaining a cautious stance on their stocks.
For Nio’s U.S.-listed shares, Hou raised the price target to $3.90 from $3.50 while maintaining a “Sell” rating. The revised target implies a downside of 10.8% based on Thursday’s closing price.
Nio expects to double its deliveries this year as its first sub-brand Onvo prepares to start deliveries of two new models in the second half of the year. Its second (and cheapest) sub-brand, Firefly, will start China deliveries in April.
XPeng’s U.S.-listed stock price target was raised to $14.60 from $12.80, with a “Neutral” rating maintained, representing a 17.5% downside. Last November, the analyst had downgraded the stock to Neutral from Buy with a $12.50 price target.
In Hong Kong, the analyst increased the price target on Nio’s shares to HK$30.00 from HK$27.00, reiterating a “Sell” rating. The price target for XPeng’s Hong Kong-listed shares was raised to HK$57.00 from HK$50.00, with the “Neutral” stance unchanged.
XPeng plays in a cheaper segment when compared to Nio and is preparing to launch its first non battery electric vehicle later this year using its recently unveiled extended-range system.
In late January, Hou cut Nio’s U.S.-listed price target by 40 cents to $3.50. In late November, she downgraded Nio from “Neutral” to “Sell” and reduced the price target by 19% to $3.90, citing concerns over the production ramp-up of Nio’s second brand, Onvo.
Last week, XPeng registered 8,060 vehicles outselling the new energy vehicle maker Li Auto and becoming the best-selling brand among newcomers. Earlier this month, the chief executive He Xiaopeng said he was confident on doubling vehicle deliveries in 2025.
In December, she reiterated a “Sell” rating and a HK$30.00 price target for Nio’s Hong Kong shares after meetings with company management.
