Goldman Sachs on Tuesday lifted its price target on XPeng‘s U.S.-listed shares by 46.3% — from $16.4 to $24.
Analyst Tina Hou said in a new research note that the rating upgrade is “the result of a series of efforts” that have “transformed the company’s product and cost structure competitiveness.”
The new target implies an upside potential of 28.7%, based on Monday’s close at $18.65.
In the Hong Kong-listed shares, the price target was also raised nearly 47% from HK$64 to HK$94.
Goldman upgraded the stock’s rating from Neutral to Buy, citing “organization and supply chain restructuring, technology cost-down” and “platformization” as the motive.
These measures lead to “higher visibility for sustainable sales volume growth as well as profit margin improvement going forward.”
In the first quarter of 2025, XPeng doubled its total revenue to 15.8 billion yuan ($2.2 billion) from a year earlier. It beat the Wall Street consensus estimate of nearly 15.6 billion.
According to Hou, the firm’s “non-GAAP net profit estimates” for 2025 and 2026 “are 23%-26% higher than Visible Alpha consensus, mainly on 8%-13% higher volume assumptions.”
The analyst considered that the “catalysts will be upcoming product launches,” which include the G7 SUV and the refreshed P7 in the next quarter, and an EREV in the last one.
XPeng pre-launched its G7 SUV last week, with a pre-sale price of 235,800 yuan ($32,850). The Guangzhou-based brand secured 10,000 orders in less than an hour.
It is equipped with two AI Turing chips, with a computing power of 2,200 TOPS, according to founder and CEO He Xiaopeng.
The model is placed between the G6 and G9 SUVs — which have been revamped earlier this year and will now be launched in Europe in mid-July.
Last month, the brand unveiled the upgraded version of its P7 sedan and a new trim for its best-selling Mona M03.
The new P7 will be priced within the 300,000 yuan ($41,800) segment, and is currently available “only in limited inventory,” through local dealers, according to the carmaker.
Late last year, the company unveiled its first extended-range system, named Kunpeng. XPeng claimed it delivers up to 1,400 km of combined range and up to 430 km of battery range.
In late March, local media outlet 36Kr reported that the brand plans to launch at least 5 EREV models, including sedans and SUVs likely based on the P7 and G6 models.
The company expects second quarter deliveries to reach between 102,000 and 108,000 units. Based on April and May results, the company is targeting between 33,430 and 39,430 units for June.
XPeng‘s chef executive set a target of 380,000 units delivered in 2025, double from the previous year. As of the last day of May, the automaker had reached 42.8% of the annual target.
Goldman Sachs also upgraded its rating on Nio’s U.S.-listed shares to Neutral from Sell, citing expectations that the EV maker’s cost reduction initiatives will help narrow losses over the next three years.
