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Investing.com - Goldman Sachs has raised its price target on XPeng (NYSE:XPEV) to $25.00 from $24.00 while maintaining a Buy rating on the Chinese electric vehicle maker. This target aligns with InvestingPro data showing XPeng is currently trading below its Fair Value, despite the stock taking a significant 17% hit over the past week.
The price target adjustment comes despite XPeng’s stock retreating 10% following its third-quarter 2025 results, which met expectations but included below-consensus fourth-quarter revenue guidance. The company’s projected volume growth is expected to slow from 149% year-over-year in Q3 2025 to 41% in Q4 2025.
Goldman Sachs anticipates stronger performance in the first quarter of 2026 when XPeng launches extended-range electric vehicle (EREV) versions of three models—the G6, G7, and P7+. According to management comments on X9 EREV pre-order data, these versions could potentially generate three times higher orders than their battery electric vehicle counterparts. This outlook aligns with XPeng’s impressive revenue growth trajectory, with the company posting 121% year-over-year revenue growth in the last twelve months.
For full-year 2026, Goldman Sachs projects 40% revenue growth driven by new model launches and sustainable revenue contribution from Volkswagen. The firm expects XPeng to achieve its first full-year breakeven with a GAAP net income of 2.2 billion yuan.
Goldman Sachs has revised its earnings estimates downward for 2025-2027, primarily due to higher R&D expenses for new business initiatives, while changes in working capital are expected to increase on shorter accounts payable days.
In other recent news, XPeng has reported its Q3 results, which exceeded expectations primarily due to non-core metrics. However, the company’s guidance for Q4 2025 came in softer than anticipated, with projected total revenue ranging from RMB 21.5-23.0 billion, reflecting a year-over-year growth of 33.5% to 42.8%. Additionally, XPeng forecasts a sales volume of 125,000 to 132,000 units, marking an increase of 36.6% to 44.3% from the previous year. Meanwhile, XPeng is recalling 47,490 P7+ vehicles in China due to a power steering connection issue, which poses a potential safety risk. Analyst firms have weighed in on these developments, with Bernstein maintaining a Market Perform rating and a $21.00 price target, while Morgan Stanley raised its price target to $34.00, reflecting optimism about the company’s growth initiatives. Jefferies continues to support XPeng with a Buy rating and a $29.00 price target, citing strong first-half 2025 performance driven by economies of scale. XPeng also showcased advancements in its Advanced Driver Assistance Systems and unveiled future product plans during its 2025 AI Day event.
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