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Investing.com - Bernstein SocGen Group has reiterated its Market Perform rating and $21.00 price target on XPeng (NYSE:XPEV), according to a research note published Tuesday. This target sits below InvestingPro’s Fair Value estimate, suggesting the stock may be undervalued despite currently trading at $22.43 with a market cap of $21.39 billion.
The firm noted that XPeng’s Q3 results beat expectations primarily on non-core metrics, while Q4 guidance came in softer than anticipated. XPeng guided Q4 2025 total revenue of RMB 21.5-23.0 billion, representing 33.5% to 42.8% year-over-year growth, with sales volume projected at 125-132k units, up 36.6% to 44.3% from the previous year. This aligns with InvestingPro data showing impressive revenue growth of 120.91% over the last twelve months, with analysts forecasting 91% growth for the full fiscal year.
The Q4 delivery guidance implies average monthly sales of 41-45k units for November and December, which Bernstein characterized as "on the softer end" compared to October’s 42k units and typical year-end seasonality patterns.
Despite the softer Q4 delivery outlook, Bernstein indicated that higher-margin service revenue from Volkswagen and the November 20 launch of the X9 EREV model with improved margins should support XPeng’s goal of achieving profit breakeven.
In a positive development for the Chinese electric vehicle manufacturer, XPeng announced that Volkswagen will adopt XPeng’s VLA 2.0 platform and in-house Turing SoC chips for B-segment vehicles launching in early 2026, which Bernstein views as "strong validation of XPeng’s chip technology." This partnership could strengthen XPeng’s financial position, which already includes more cash than debt on its balance sheet. The stock has delivered strong returns with 89.76% year-to-date price appreciation, though analyst targets vary widely from $18.35 to $49.98, reflecting mixed sentiment about the company’s prospects.
In other recent news, XPeng has been in the spotlight with several developments. Jefferies reiterated its Buy rating on XPeng, highlighting the company’s path to profitability and noting that its first-half 2025 performance exceeded expectations due to strong margins. HSBC also raised its price target for XPeng to $29.60 from $27.40, maintaining a Buy rating, suggesting substantial upside potential. Morgan Stanley increased its price target on XPeng to $34.00 from $30.00, reflecting optimism about the company’s growth initiatives beyond electric vehicles. Meanwhile, Bernstein reiterated a Market Perform rating with a $21.00 price target following XPeng’s 2025 AI Day event, where the company showcased advancements in technology, including plans for robotaxis and eVTOLs. In safety-related news, XPeng is recalling over 47,000 P7+ vehicles in China due to a power steering connection issue that could pose a safety risk. These developments reflect a mix of strategic advancements and challenges for XPeng in its ongoing journey.
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