Bernstein raises XPeng stock price target to $19

On Thursday, Bernstein analysts, led by Eunice Lee, increased the price target for XPeng (NYSE:XPEV) shares to $19.00, up from the previous $18.00, while maintaining a Market Perform rating on the stock. The adjustment follows XPeng’s announcement of its first-quarter revenue, which showed a significant year-over-year increase. The stock has shown remarkable momentum, gaining over 154% in the past year and nearly 87% year-to-date. InvestingPro analysis reveals 13 additional key insights about XPeng’s performance and outlook.

XPeng reported a first-quarter revenue of RMB 15.8 billion, marking a rise of 141.5% compared to the same period last year, although it represented a slight 1.8% decrease from the previous quarter. The company’s delivery of 94,000 units during the quarter, a substantial 330.8% increase year-over-year and a 2.7% rise quarter-over-quarter, was driven by the strong performance of its MONA M03 and P7+ models. With a market capitalization of $21.2 billion and trailing twelve-month revenue of $5.6 billion, XPeng appears fairly valued according to InvestingPro’s Fair Value analysis.

Despite the impressive volume growth, the average selling price (ASP) for XPeng’s vehicles declined to RMB 153,000, which is a drop of 39.8% year-over-year and 4.7% quarter-over-quarter. This decrease in ASP was attributed to a weaker product mix due to the introduction of the more affordable M03 model. While the company maintains a strong gross profit margin of 14.6%, InvestingPro data indicates it’s not yet profitable, with analysts expecting continued losses this year. For deeper insights into XPeng’s financial health and detailed analysis, consider exploring the comprehensive Pro Research Report available on InvestingPro.

Looking ahead to the second quarter, XPeng has provided guidance that aligns with market expectations. The company expects total revenue to be between RMB 17.5 billion and RMB 18.7 billion, which would represent a year-over-year increase in the range of 116% to 131%. Sales volume is projected to be between 102,000 and 108,000 units, indicating a year-over-year increase of 238% to 258%.

The guidance also suggests that the average monthly sales for May and June will remain relatively stable compared to the 35,000 units sold in April. Although May is anticipated to be a transitional month with potentially lower month-over-month volumes, the upcoming facelifts for the G6 and G9 models, along with the launch of the MONA M03 Max and G7, are expected to sustain sales momentum for XPeng in the following months.

In other recent news, XPeng reported its first-quarter 2025 results, showing significant financial improvements. The company achieved a 141% year-over-year increase in sales, reaching RMB 16 billion, with a gross profit margin of 15.6%. XPeng’s net loss narrowed to RMB 664 million, aided by government subsidies and foreign exchange gains. The firm also provided a second-quarter guidance of vehicle deliveries between 102,000 and 108,000 units, a notable increase from previous estimates.

Macquarie upgraded XPeng’s stock rating to Outperform, setting a new price target of $24, while BofA Securities raised its target to $29, maintaining a Buy rating. Morgan Stanley (NYSE:MS) reaffirmed its Overweight rating with a $26 target, highlighting XPeng’s progress toward breakeven. XPeng also launched a new P7+ model with faster charging capabilities, unveiled at the 2025 Shanghai auto show, which was well-received by investors.

In April, XPeng’s vehicle deliveries nearly tripled compared to the previous year, reaching 35,045 units, marking the sixth consecutive month of strong sales. The company’s advancements in technology and strategic model launches are seen as potential catalysts for future growth. XPeng’s management remains focused on doubling volume growth by 2025 and achieving net profit breakeven by the fourth quarter of that year.

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