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Investing.com - Tiger Securities has reiterated its Buy rating on XPeng (NYSE:XPEV) with a $28.00 price target, citing the company’s strong growth trajectory and path to profitability. The stock, which has surged 176% over the past year and currently trades near $20.75, has analyst targets ranging from $18.05 to $35.64, according to InvestingPro data.
The firm highlighted management’s guidance for third-quarter 2025 deliveries of 113,000-118,000 units, representing 143-154% year-over-year growth, alongside projected revenue of RMB 19.6-21.0 billion, a 94-108% increase from the previous year. InvestingPro analysis shows XPeng has maintained strong momentum, with a projected 99% revenue growth for FY2025 and holds more cash than debt on its balance sheet.
Tiger Securities described XPeng’s second-quarter 2025 results as a "decisive beat" on both top and bottom lines, with clear visibility into a stronger margin profile that puts the company on track for profitability in the fourth quarter of 2025.
The research firm expects gross margin expansion in the second half of 2025 as premium models scale, though it noted operating expenses will rise in the near term due to new product launches.
Tiger Securities remains constructive on XPeng shares, pointing to longer-term structural margin expansion driven by ASP upgrades from the P7 and X9 models, continued cost optimization, and monetization of proprietary AI technologies.
In other recent news, XPeng has made significant strides in its financial and technological endeavors. The company reported a net loss for the first quarter that was better than expected, aided by subsidies and foreign exchange benefits. Macquarie has raised its price target for XPeng to $25.00, highlighting potential vehicle margin expansion. Meanwhile, Goldman Sachs upgraded XPeng from Neutral to Buy, citing strategic improvements such as organizational restructuring and supply chain optimization, raising the price target to HK$94.00 for Hong Kong-listed shares and US$24 for NYSE-listed shares.
XPeng also showcased its autonomous driving technology at the Conference on Computer Vision and Pattern Recognition, being the only Chinese automaker invited to the event. In collaboration with industry leaders like Waymo and NVIDIA (NASDAQ:NVDA), XPeng presented its advancements in autonomous driving. Additionally, the company is reportedly developing advanced chips for Volkswagen (ETR:VOWG_p) vehicles, claiming its self-designed Turing processors outperform those by NVIDIA.
CFRA analysts have upgraded XPeng from a Strong Sell to Hold, with a new price target of $20.00, reflecting anticipated revenue growth and market expansion. The analysts project a 117% revenue increase by 2025, driven by a 180% rise in car deliveries and expansion into new markets. However, they note an expected decrease in the average selling price due to a higher sales mix of cheaper models.
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