Written by Cláudio Afonso | LinkedIn | X
Barclays analyst Jiong Shao reiterated on Wednesday the firm’s underweight rating on Xpeng shares while maintaining the $8.00 price target.
The price target follows the first-quarter earnings report published on Tuesday and implies a downside of 8.80 percent based on the latest closing price of $8.77 per share.
In a new research note, the analyst stated that the results “would have been broadly inline excluding the positive impact from high-margin tech services revenues from Volkswagen”.
Regarding the upcoming subbrand, Shao reminded that the first low-end “Mona” branded car is to be unveiled in June adding that the “management stated it would be the “most beautiful” A class EV in the market”.
The analyst affirmed a conservative position saying the firm “will believe it when we see it. Retain Underweight rating, price target $8”.
Xpeng published its first quarter earnings results on Tuesday reporting a 49.8 percent crash in total revenues quarter over quarter to 6.55 billion RMB.
The gross margin surged to 12.9 percent in the first quarter of 2024, marking a substantial increase from 1.7 percent in the corresponding period of 2023 and 6.2 percent in the fourth quarter of 2023.
The company expects to deliver between 29 and 32 thousand vehicles in the second quarter of the year, which would represent a yearly growth of 25 to 37.9 percent.
In the first month of the quarter, the Guangzhou-based EV maker delivered 9,393 vehicles, of which 1,959 were Xpeng’s recently launched fully electric MPV X9. Based on that, Xpeng
China’s manufacturer Xpeng delivered 9,393 vehicles in April, of which 1,959 were Xpeng’s recently launched fully electric MPV X9. The April figures represent a 33 percent increase year-on-year and a sequential growth of 4 percent.
Written by Cláudio Afonso | LinkedIn | X
