Citi Upgrades XPeng (XPEV) to Buy

Citi analyst Jeff Chung upgraded XPeng (NYSE: XPEV) from Buy to Buy with a price target of $29.00 (from $13.70).

The analyst comments "Volume upgrade: 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. Valuation: To factor in robust model launches and company’s consistent efforts in the AI/Robotics field, we adopt 2.5x 2025E P/S multiple (1SD above 2-year average level; versus previous 1.9x) and lift our TP from US$13.70/HK$53.30 to US$29.00/HK$113.00. Upgrade to Buy considering strong volume growth in 2025/26E on robust order intake and new model launches, 2026E earnings turnaround and potentially extra growth drivers on AI/Robotics."

For an analyst ratings summary and ratings history on XPeng click here. For more ratings news on XPeng click here.

Shares of XPeng closed at $23.60 yesterday.

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