Tiger Securities raises XPeng stock price target to $28

Published 18/03/2025, 18:00
Tiger Securities raises XPeng stock price target to $28

On Tuesday, Tiger Securities significantly increased the price target for XPeng shares (NYSE:XPEV), setting it at $28, a substantial rise from the previous target of $15. Currently trading at $22.69, the stock has demonstrated remarkable momentum with a 184% surge over the past six months. The firm also reaffirmed its Buy rating on the stock. Stifel analysts highlighted XPeng’s advancements in AI-driven smart mobility as a key factor for this optimistic outlook. According to their analysis, XPeng is effectively utilizing its expansive AI model, which is built upon more than 100 million kilometers of real-world driving data, to lead in the smart vehicle space. InvestingPro data reveals the company has already achieved impressive 66% year-over-year revenue growth.

XPeng’s focus on developing autonomous driving technology and AI-powered smart vehicles has been recognized as a step towards more advanced embodied AI systems. With a substantial market capitalization of $21.48 billion and a healthy current ratio of 1.37, the company appears well-positioned to execute its ambitious plans. Such innovations are expected to place the company at the vanguard of next-generation mobility solutions. The analysts noted that XPeng’s strategy goes beyond just automotive transportation; it encompasses a broader vision that includes flying cars and humanoid robotics.

The integration of AI into various mobility and automation solutions is central to XPeng’s long-term strategy. Tiger Securities’ analysts believe that the company is not just enhancing the current human-machine interaction standards but is also aiming to completely redefine them. This approach, according to the firm, positions XPeng as a pioneer in a rapidly evolving industry.

Tiger Securities’ updated price target reflects confidence in XPeng’s potential to influence the future of transportation and automation through its commitment to AI and smart technology. The company’s ambition to merge AI-powered vehicles with flying cars and humanoid robots signifies a transformative period in the way people interact with machines, signaling a new era of integrated mobility solutions. Based on InvestingPro’s comprehensive analysis, XPeng is currently fairly valued, with analyst targets ranging from $7.01 to $35.08. Discover 12 additional exclusive ProTips and detailed financial metrics with an InvestingPro subscription, including the company’s in-depth Pro Research Report.

In other recent news, Xpeng has introduced updated versions of its G6 and G9 SUVs, featuring reduced prices. The G6 is now priced at approximately $24,400, which is 11.6% lower than its predecessor, while the G9’s price has decreased by 5.7%. Both models now include Xpeng’s Turing AI smart driving system at no extra cost. Meanwhile, UBS has upgraded Xpeng’s stock rating from Sell to Neutral, setting a new price target of $18.00. This decision reflects the growing interest in artificial intelligence within equity markets, although UBS notes concerns about Xpeng’s valuation and competitive pressures.

Additionally, Xpeng has strengthened its partnership with Volkswagen (ETR:VOWG_p) to expand an ultra-fast EV charging network in China, planning to open their networks to each other’s customers. This collaboration follows Volkswagen’s acquisition of a nearly 5% stake in Xpeng in 2023. In the broader context, China’s car market has seen a 12% drop in sales in January, marking the largest decline in a year. However, sales of new energy vehicles, including electric and plug-in hybrids, rose by 10.5% year on year, constituting 41.2% of total sales.

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