Written by Cláudio Afonso | LinkedIn | X
Wall Street analysts adjusted their price targets on the Chinese carmaker XPeng on Wednesday after the Chinese automaker posted fourth-quarter results that topped revenue estimates and showed improved margins.
XPeng shares closed 7% lower on Tuesday as results failed to convince investors. However, the stock is trading nearly 5% higher at $23.72 on early Wednesday recovering part of the losses.
JPMorgan’s Nick Lai lowered the price target to $31 from $35 while maintaining an Overweight rating suggesting an upside potential of about 32%. CLSA’s Ding Luo raised the target on XPeng’s Hong Kong-listed shares to HK$106 from HK$69, keeping an Outperform rating.
Daiwa Securities’ Kelvin Lau downgraded XPeng to Neutral from Outperform, with a price target of $24.
Bernstein’s analyst Eunice Lee increased the price target to $18 from $14 as it increases sales estimates citing “stronger delivery momentum and an upbeat new product cycle.”
“We rate XPeng Market-Perform with price targets at $18 (previously $14) for U.S.-listed shares and HK$70 (previously HK$54) for Hong Kong shares,” the analyst wrote in a new research note.
“We raised our volume forecast on stronger delivery momentum and an upbeat new product cycle but expect some profit-taking after the stock’s over 100% year-to-date rally.”
On Tuesday, US Tiger Securities analyst Bo Pei nearly doubled the firm’s price target to $28.
The carmaker’s founder He Xiaopeng said on Tuesday he is “confident” about more than doubling last year’s delivery figures suggesting XPeng sales can surpass 380,000 units this year.
“XPeng continues to lead in AI-driven smart mobility, with its large-scale foundational AI model leveraging over 100 million kilometers of real-world driving data,” Bo Pei wrote in the research note.
The company said on Tuesday it expects to deliver between 91,000 and 93,000 electric vehicles this quarter suggesting its March deliveries will again surpass the 30,000 threshold.
He Xiaopeng said in the conference call that orders for the recently launched refreshed models G6 and G9 SUVs “continue to pile up and have exceeded our expectations.” Deliveries will start later this week with production ramp up expected to kick off to meet the demand.
