Citi lowers XPeng price target by 27%, reiterates the company as a top sector pick

Written by Cláudio Afonso |

Citi analyst Jeff Chung lowered this Tuesday its price target on XPeng shares to $67 from $92, keeping a Buy rating. Although the lower price target, Chung reiterated the company as a top sector pick after the company Earnings Results released yesterday. The new price target implies an upside potential of 147% on the shares. Chung believes that XPeng‘s breakeven can be achieved in 2024 helped by the “strong deliveries”. If the company keeps the order backlog during April and May, XPeng will see a “consensus estimate upgrades on volume assumptions”. — the analyst noted.

XPeng delivered 41,751 units in the fourth quarter of 2021, growing 222% year-over-year. During the full year of 2021 XPeng increased its deliveries numbers by 263% compared with 2020 and reached 98,155 units. Earlier today, US Tiger Securities analyst Bo Pei upgraded its rating on XPeng shares from Hold to Buy with a price target of $43.00, down from $50.

During Earnings Conference Call, CEO He Xiaopeng showed its confidence on XPeng’s XPILOT 4.0 Version: it “will boast a clear next-generation leap against other mass-produced advanced driver assistance systems. Simply put, under the premise of offering superior safety, the XPILOT 4.0 will feature a more comprehensive set of use scenarios, even wider geographical coverage and a better Q1 vehicle interface and in-vehicle experience for both drivers and passengers.”

“I have confidence in our ability to achieve structural improvement of gross margin for our new models, including G9 and ultimately improve overall gross margin. Our medium- and long-term goal is to increase the level of our overall gross margin above 25%. At the same time, we’ll remain dedicated to our vision and execute on our sounding strategy and operational literacy to continuously — to continually boost operational efficiency. Going forward, as we achieve economies of scale, while improving operating leverage, I believe our operating expense ratio will continue to trend downward.” — CEO added.


Earlier this month, CLSA analyst Aaron Li initiated coverage of XPeng Motors with a Buy rating and $42 price target. The new price target implies an upside potential of 44.77%, based on the last closing price of $29.01, on Tuesday. Recently, Morgan Stanley analyst Tim Hsiao lowered the price targets on the Guangzhou-based company to $42 from $71 — a decrease of 40%.

The EV maker reached the production milestone of 100,000 units of its P7 Model. The EV maker reaches the milestone 695 days after starting the production of the sports sedan, on April 27, 2020, representing a new record for pure EV makers from emerging auto brands in China. The accomplishment reflects customers’ recognition of the P7’s quality and smart functionality, as well as the efficiency of XPENG’s production, supply chain management, and sales and service network. — the company added.


According to the photos posted on Weibo by the Car Blogger @汽车拍客阿睿, Xpeng P7 Performance has been under tests bringing LiDAR technology in the headlights and an improved steering wheel, the same used on the G9 model. The G9 SUV model was unveiled last November at Auto Guangzhou 2021 Show, and the company expects to start its deliveries by the end of August 2022.

The company announced that delivered 6,225 Smart EVs in February 2022, representing a 180% increase year-over-year. According to the company, the February deliveries consisted of 3,537 P7 smart sports sedans, representing a 151% year-over-year increase. 2,059 P5 smart family sedans were delivered in February, bringing cumulative deliveries of the P5 to 13,953 since its launch in September 2021. Also 629 G3 & G3i smart compact SUVs were delivered in February.

Written by Cláudio Afonso |