Bernstein raises XPeng stock price target to $18

On Wednesday, Bernstein analysts, led by Eunice Lee, increased the price target for XPeng Inc. (NYSE:XPEV) shares, lifting it to $18.00 from the previous $14.00. The firm has maintained a Market Perform rating on the electric vehicle manufacturer’s stock. According to InvestingPro data, XPeng’s stock has shown remarkable momentum with a 128.9% return over the past year, despite recent volatility. The adjustment in the price target reflects a more optimistic view of the company’s sales volume, driven by a strong delivery performance and the anticipation of a promising new product cycle.

Bernstein’s valuation of XPeng is now based on a 1-year forward 1x EV/sales multiple, revised upwards from the prior multiple of 0.9x. This change comes on the heels of XPeng’s robust fourth-quarter results, which showed revenue growth of 33.2% and a gross profit margin of 14.3%, according to InvestingPro data. Looking ahead to 2025, analysts forecast 34% revenue growth, though they don’t expect profitability this year. Despite these strong indicators, the analysts have taken into consideration the stock’s significant year-to-date increase of 91.5%.

The analysts noted that XPeng’s recent financial results have been impressive and that the company’s future prospects appear bright. The company maintains a healthy balance sheet with more cash than debt, and a current ratio of 1.25. However, due to the rapid appreciation in the stock’s price and a relatively high Price/Book ratio of 4.85, the analysts anticipate that investors might engage in profit-taking from the current levels. Get access to 12 additional exclusive InvestingPro Tips and comprehensive valuation metrics for XPeng through our detailed Pro Research Report.

In addition to the revised price target for XPeng’s NYSE-listed shares, Bernstein also updated the price target for the company’s Hong Kong-listed shares, 9868.HK, raising it to HK$70.00 from HK$54.00. This move aligns with the firm’s positive assessment of XPeng’s operational momentum and market potential.

Bernstein’s commentary highlights the firm’s expectations that XPeng will continue to experience strong delivery momentum, which has been a key factor in the decision to raise the volume forecast. The analysts’ stance remains cautious due to the recent run-up in the stock’s price, suggesting that the current valuation may prompt some investors to realize their gains.

In other recent news, XPeng has unveiled updated versions of its G6 and G9 SUVs, offering them at reduced prices. The new G6 model is priced at approximately $24,400, reflecting an 11.6% decrease, while the G9 is available for about $34,300, a 5.7% reduction. These vehicles come equipped with XPeng’s Turing AI smart driving system, enhancing their autonomous driving capabilities at no additional cost. In a separate development, Tiger Securities raised its price target for XPeng shares to $28, citing the company’s advancements in AI-driven smart mobility. XPeng’s strategic focus on AI and autonomous technology has positioned it as a leader in next-generation mobility solutions.

Additionally, UBS upgraded XPeng’s stock rating from Sell to Neutral, setting a new price target of $18. This upgrade reflects a growing recognition of XPeng’s AI potential, although UBS remains cautious due to competitive pressures and valuation concerns. Meanwhile, Chinese EV stocks, including XPeng, experienced a rise amid a downturn in Tesla (NASDAQ:TSLA) shares, driven by a promising sales outlook for March. The China Passenger Car Association reported an 80% increase in February retail sales of new-energy vehicles, highlighting the robust demand for electric cars in China. These developments underscore XPeng’s active role in the evolving automotive market and its commitment to integrating AI into its product offerings.

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