U.S. futures subdued as government shutdown stretches into second week
Investing.com - BofA Securities raised its price target on XPeng (NYSE:XPEV) to $26.00 from $25.00 on Tuesday, while maintaining a Buy rating on the Chinese electric vehicle maker. The stock, which has delivered an impressive 176% return over the past year and currently trades at $20.75, aligns with the broader analyst consensus of Buy. InvestingPro analysis indicates the stock is slightly undervalued based on its proprietary Fair Value model.
The firm’s decision follows XPeng management’s forecast to deliver between 113,000 and 118,000 vehicles in the third quarter of 2025, representing year-over-year growth of 143% to 154%. Revenue for the same period is expected to reach RMB19.6-21 billion, a 94% to 108% increase from the previous year. This ambitious target aligns with InvestingPro data showing a projected 99% revenue growth for fiscal year 2025, though investors should note the stock’s high volatility with a beta of 2.5.
XPeng anticipates reaching monthly sales exceeding 40,000 units from September through December 2025, according to the BofA Securities research note.
Based on XPeng’s second-quarter 2025 results, BofA Securities has increased its volume sales estimates for 2025, 2026, and 2027 by 1%, 2%, and 1% respectively. The firm now projects a wider non-GAAP net loss of RMB822 million for 2025, compared to its previous estimate of RMB703 million.
BofA Securities lowered its 2026 non-GAAP net profit forecast by 2% but raised its 2027 estimate by 20%, citing a strong model pipeline expected in the second half of 2025 through 2026 as justification for maintaining its Buy rating.
In other recent news, XPeng has been the focus of several significant developments. Tiger Securities has maintained its Buy rating on XPeng with a $28 price target, citing the company’s strong growth trajectory and path to profitability. The firm highlighted management’s guidance for third-quarter 2025 deliveries of 113,000-118,000 units, representing a 143-154% year-over-year growth, alongside projected revenue of RMB 19.6-21.0 billion, a 94-108% increase from the previous year. Macquarie raised its price target on XPeng to $25, citing potential vehicle margin expansion as a key focus area. Meanwhile, Goldman Sachs upgraded XPeng from Neutral to Buy, noting strategic improvements such as organizational restructuring and supply chain optimization. Additionally, XPeng presented its autonomous driving technology at the 2025 Conference on Computer Vision and Pattern Recognition, discussing advancements with industry leaders. The company is also reportedly developing advanced chips for Volkswagen (ETR:VOWG_p) vehicles, claiming superior performance to those made by Nvidia (NASDAQ:NVDA). These developments underscore XPeng’s ongoing efforts to enhance its competitiveness and technological capabilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.