Written by Cláudio Afonso | LinkedIn | X
Citi analyst Jeff Chung upgraded on Monday the firm’s rating on the Chinese carmaker XPeng increasing its delivery estimates for this year by 85% to nearly half a million vehicles.
In a new research note, Jeff Chung upgraded the stock’s rating from Hold to Buy while more than doubling the price target to $29.00 from $13.70 citing strong order intake in February and the launch of several new models.
“We lift 2025/26E volume forecast from 260k/330k units to 480k/580k units, considering: (1) strong order intake in Feb, (2) we expect 2-3 BEV & 1 EREV new models as well as facelift models launches this year, likely enhancing existing model cycle between 2Q25 and 3Q25, (3) our expectation on P7+ and MONA03 to achieve matured monthly run-rate of around 20-24k units because of potential strong EV demand in 2025E as well as consistent growth from export demand in China EVs,” Chung wrote.
XPeng delivered 30,453 vehicles in February, exceeding 30,000 units for the fourth consecutive month.
Citi analyst added that the new valuation factors in “robust model launches” and XPeng’s “consistent efforts in the AI/Robotics field.”
For the Hong Kong-listed shares, the new price target was increased to HK$113.00, up from HK$53.30. The analyst expects a turnaround in 2026 earnings estimates and “potentially additional growth drivers in AI/Robotics.”
Later this week, the company will launch its refreshed G6 and G9 SUVs in the Chinese market aiming to maintain the competitiveness in the world’s largest NEV market.
