Citigroup Keeps Buy Rating, Raises PT for Xpeng to $29.4.

Citigroup Keeps Buy Rating, Raises PT for Xpeng to $29.4.

Citigroup has maintained its Buy rating for XPeng (XPENG-W, 09868.HK; XPEV.US) while raising its price target to HKD114.8, an increase of HKD1.8 from the previous target of HKD113. The investment bank highlighted XPeng's strong second-quarter performance, which saw its gross profit margin (GPM) increase by 1.8 percentage points quarter-over-quarter (QoQ) or 3.3 percentage points year-over-year (YoY) to 17.3%. Additionally, XPeng's net loss narrowed by 28% QoQ or 63% YoY to RMB478 million, both figures exceeding market expectations [1].

The positive outlook is further bolstered by XPeng's delivery expectations for the third quarter of 2025, which are forecasted to be between 113,000 to 118,000 vehicles, representing a YoY growth of 143% to 154%. This growth is in line with market expectations and underscores the company's robust sales momentum.

Citigroup's revised target price reflects its confidence in XPeng's ability to continue its growth trajectory and achieve profitability in the fourth quarter of 2025. The investment bank also noted that XPeng's strong cash position and strategic initiatives, such as organizational restructuring and supply chain optimization, will support its long-term success.

Other analysts have also expressed optimism about XPeng's prospects. Tiger Securities reiterated its Buy rating with a $28.00 price target, citing the company's strong growth trajectory and path to profitability [2]. Macquarie raised its price target to $25.00, highlighting potential vehicle margin expansion, while Goldman Sachs upgraded XPeng from Neutral to Buy, raising its price target to HK$94.00 for Hong Kong-listed shares and US$24 for NYSE-listed shares.

References:
[1] http://www.aastocks.com/en/usq/news/comment.aspx?catg=1&id=NOW.1462506&source=AAFN
[2] https://www.investing.com/news/analyst-ratings/tiger-securities-maintains-xpeng-stock-rating-with-28-target-on-strong-outlook-93CH-4200538