Barclays lifts XPeng stock price target to $20 from $7

On Thursday, Barclays (LON:BARC) increased its price target for XPeng (NYSE:XPEV) shares to $20.00, a significant rise from the previous $7.00, while maintaining an Underweight rating on the stock. The adjustment follows a period of substantial vehicle delivery growth for XPeng, with the fourth quarter and the first quarter of the current year seeing volumes more than triple those recorded in the first half of 2024. This growth has contributed to impressive returns, with the stock surging over 147% in the past six months and achieving a market capitalization of $22.58 billion. According to InvestingPro analysis, the company has demonstrated strong revenue growth of 33.22% over the last twelve months.

The analyst at Barclays highlighted the company’s strong momentum in refreshing existing models and launching new products into the market in 2025. Despite the positive developments in operations, the analyst expressed concerns over the company’s valuation, noting that it has become stretched following a recent surge in the share price. These concerns align with InvestingPro’s Fair Value assessment, which indicates the stock is currently overvalued. The company’s Price-to-Book ratio of 5.1 and negative earnings per share of -$0.84 over the last twelve months further support these valuation concerns. Consequently, while the price target has been raised to reflect the growth in deliveries and product momentum, the Underweight rating has been retained.

XPeng’s performance in the latter half of the past year and the beginning of this year indicates a robust growth trajectory in terms of production and sales. This growth is partly attributed to the company’s efforts to update its vehicle lineup and introduce new models, catering to the increasing consumer demand for electric vehicles. For deeper insights into XPeng’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, investors can access the detailed Pro Research Report available on InvestingPro.

The analyst’s comments suggest that while XPeng’s operational achievements are commendable, the current stock valuation may not fully account for potential risks or future market conditions. The maintained Underweight rating implies that Barclays advises caution to investors, signaling that the stock may be overvalued at its current price level despite the raised target.

Investors and market observers will be watching XPeng’s continued performance closely, especially in light of the company’s aggressive approach to model updates and new launches. The revised price target from Barclays provides a new benchmark for the market to consider as it evaluates XPeng’s stock in the context of its recent delivery figures and product development initiatives.

In other recent news, XPeng Inc. has been the focus of several analyst updates and product announcements. The company revealed updated versions of its G6 and G9 SUVs, which feature lower price tags and come equipped with XPeng’s Turing AI smart driving system at no additional cost. The G6 is now priced at approximately $24,400, while the G9 is available for about $34,300.

Analyst firms have also adjusted their outlooks for XPeng. Bernstein raised its price target for XPeng’s shares to $18, citing strong delivery performance and a promising product cycle. Similarly, UBS upgraded XPeng’s stock rating from Sell to Neutral, setting a price target of $18, driven by the market’s increasing focus on AI potential. Meanwhile, Tiger Securities set a more optimistic price target of $28, highlighting XPeng’s advancements in AI-driven smart mobility.

These developments come amid a broader rise in Chinese EV stocks, partly due to a decline in Tesla (NASDAQ:TSLA) shares. The market’s positive response to XPeng’s AI and smart technology initiatives underscores the company’s potential influence in the future of transportation.

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