Written by Cláudio Afonso | LinkedIn | X
Citi has upgraded on Tuesday the rating on Xpeng shares from a ‘Sell’ to ‘Neutral’, while increasing its price target on the electric vehicle (EV) stock from HK$29.90 to HK$32.20.
On Tuesday, Hong Kong traded shares closed at HK$30.50 indicating that Citi’s new price target represents an upside potential of 5.57 percent.
In a new research note, the firm has highlighted a stronger upcoming model cycle as a key reason for the upgrade with the first model to be launched around the corner.
Xpeng‘s new series, Mona, is expected to enhance XPeng’s export capabilities as the current valuation of the company shares present a balanced risk-reward scenario, according to Citi.
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However, and as a reason to not sign it with the ‘Buy’ rating, the firm cited several challenges, including tough BEV demand and supply dynamics, recent weak electric vehicle (EV) sales, and a weak model cycle that is expected to persist until the fourth quarter of 2024.
A few days after announcing plans to test advanced automated driving (AD) technology from competitors, the CEO He Xiaopeng shared earlier today his insights on social media.
He detailed his experiences with Tesla’s Full Self-Driving (FSD) software after testing the V12.3.6 in California and also taking a ride using Waymo’s autonomous ride-hailing service in the United States.
“I am truly impressed by the significant progress FSD has made in just a few months. It offers valuable features and a user experience that we can learn from,” He Xiaopeng remarked.
The company has recently announced its expansion into the Egyptian market with the launch of two electric models from its portfolio including the flagship SUV Xpeng G9, and the sedan Xpeng P7.
Both models will be available for delivery to the Egyptian market starting from the end of this month, marking Xpeng’s first foray into the African continent.
Xpeng delivered 10,146 vehicles in May, marking a 35 percent year-on-year increase. The company, led by He Xiaopeng, is gearing up to launch its sub-brand Mona later this month.
Written by Cláudio Afonso | LinkedIn | X
