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Investing.com - HSBC raised its price target on XPeng (NYSE:XPEV) to $29.60 from $27.40 on Friday, while maintaining a Buy rating on the Chinese electric vehicle maker’s stock. The move comes as XPeng shows strong momentum, with the stock surging 15.48% in the past week and an impressive 92.47% year-to-date, according to InvestingPro data.
The price target increase implies approximately 45% upside potential from XPeng’s current share price, according to HSBC. This aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $18.18 to $35.65, with most maintaining a Buy rating on the stock.
HSBC analyst Yuqian Ding noted that the firm continues to use a discounted cash flow (DCF) model to value the stock, with the new target based on refreshed earnings estimates for 2025-27.
The investment bank also updated its target price for XPeng’s Hong Kong-listed shares (9868 HK) to HKD115.00 from HKD107.00 previously.
HSBC’s revised valuation incorporates an updated RMB/HKD foreign exchange rate of 1.10, compared to the previously used rate of 1.06.
In other recent news, XPeng has announced significant developments that have captured the attention of investors and analysts alike. The company is forecasting third-quarter 2025 vehicle deliveries between 113,000 and 118,000 units, marking a substantial year-over-year growth of 143% to 154%. Revenue for this period is expected to reach between RMB 19.6 billion and RMB 21 billion, representing a 94% to 108% increase from the previous year. BofA Securities has responded by raising its price target on XPeng to $26, maintaining a Buy rating, while Tiger Securities reiterated its Buy rating with a $28 target, citing a strong growth trajectory.
Macquarie has also adjusted its price target to $25, noting potential vehicle margin expansion as a key area of focus for XPeng. Meanwhile, Goldman Sachs has upgraded XPeng from Neutral to Buy, setting a new price target of US$24, following strategic improvements in organizational structure and supply chain optimization. Additionally, XPeng showcased its autonomous driving technology at the 2025 Conference on Computer Vision and Pattern Recognition in Nashville, highlighting its advancements in scaling up autonomous driving. These developments point to a dynamic period for XPeng as it continues to enhance its competitive edge in the electric vehicle market.
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