BofA Securities reiterated its Buy rating and $19.00 price target on XPeng (NYSE: XPEV) shares, citing the company’s recent $900 million funding round for its humanoid robotics subsidiary, Dogotix. The round, announced on August 24, was described as the largest single private equity financing in China’s embodied AI sector. XPeng retained a 73.8% equity stake in Dogotix post-funding, with external investors including IDG Capital, Alibaba, Tencent, and Gaorong Ventures contributing $600 million.
XPeng’s stock was trading at $11.15, near its 52-week low of $11.10, and has declined 45% year-to-date. The company reported second-quarter revenue of RMB 19.7 billion, an 8% increase year-over-year and a 51.5% rise from the prior quarter, driven by higher vehicle deliveries. Revenue fell short of Wall Street’s expectation of $20.57 billion, while adjusted earnings per share came in at a loss of $1.29, missing the forecasted loss of 29 cents. Services and other revenue nearly doubled year-over-year, supported by contributions from Volkswagen.
Macquarie and Bernstein SocGen reduced their price targets for XPeng to $18, maintaining Outperform and Market Perform ratings, respectively. Tiger Securities lowered its target to $15 with a Hold rating. XPeng’s financial health was rated as "GOOD" on InvestingPro, with the platform categorizing the stock as undervalued based on its Fair Value analysis.
