US-listed shares of the Chinese carmaker XPeng reached a new five-month high on early Thursday, two days after the company reported its second quarter earnings results, posting a record gross margin of 17.3%.
After dropping nearly 2% on Wednesday, XPeng‘s stock price soared by over 10% on early Thursday to $22.44.
The stock has surged by nearly 87% since the beginning of the year, and more than tripled in the past twelve months.
Several Wall Street analysts have raised their price targets on XPeng, following its financial results for the April—June period.
Bank of America (BofA) analyst Ming Hsun Lee reiterated on Tuesday the Buy rating on XPeng shares, citing “higher sales” and a “strong model pipeline” in the second half of the year.
The analyst lifted BofA’s price target on XPeng by $1 to $26, implying an upside potential of 30.7% on the stock, based on Monday’s close at $19.90.
On the same day, US Tiger Securities maintained a $28 price target on the stock, which implied an upside potential of 40.7%.
Analyst Bo Pei noted that the firm sees XPeng‘s second quarter print as “a decisive beat on both top and bottom line, with clear visibility into a stronger margin profile (on track to profitability in the fourth quarter), an accelerating product cycle, and growing overseas contribution.”
Earlier on Thursday, Citi analyst Jeff Chung also raised his price target on both US and HK-listed shares of the Chinese automaker — according to a research note obtained by PriceTarget.
The analyst increased the firm’s price target to $29.40, which would imply a 44.3% increase based on Wednesday’s closing price. The firm also has a Buy rating on the company’s stock.
XPeng‘s vehicle margin rose for the eighth consecutive quarter to 14.3%, more than doubling from a year ago, while its vehicle average selling price lowered by 28% year over year.
The company introduced its cheapest model, the Mona M03, exactly a year ago. The sedan quickly became the brand’s best-selling model — representing over 40% of July deliveries.
The brand estimates to deliver between 113,000 and 118,000 vehicles from July to September, which would represent a 142-153% jump from a year ago.
In July, the company delivered 36,717 vehicles, meaning that it must deliver between 76,283 and 81,283 vehicles in August plus September to reach the guidance.
Deliveries of its most recently launched model, the G7 SUV, began on July 7, while the recently unveiled refreshed P7 is scheduled to be released “next week.”
On Wednesday, XPeng‘s founder and CEO He Xiaopeng said on Weibo that the revamped iteration of the sedan achieved the highest pre-order numbers since the brand’s inception 11 years ago.
