Bank of America Securities maintained its Buy recommendation and $19 price target for XPeng (XPEV) following the EV manufacturer’s $900 million fundraising round for its Dogotix humanoid robotics subsidiary.
The financing round, completed on August 24, values Dogotix at $6.3 billion post-money, up from a $5 billion pre-money valuation. XPeng contributed $200 million to the round, while external investors including IDG Capital, Alibaba, Tencent and Gaorong Ventures provided $600 million. Management participation accounted for the remaining $100 million.
XPeng’s ownership stake in Dogotix stands at approximately 73.8% on a fully diluted basis, though this could expand to about 68.41% after accounting for the full exercise of management warrants, the 15% equity incentive plan and shares reserved for an additional investor. The unit’s record-setting round marks the largest single private financing in China’s embedded AI sector.
Shares of XPeng closed at $11.15 on Friday, near the 52-week low of $11.10 and down 45% year-to-date. The company reported second-quarter revenue of RMB 19.7 billion, a 51.5% increase from the prior quarter but an 8% rise year-over-year, missing Wall Street’s forecast of $20.57 billion. Adjusted loss per share widened to $1.29, exceeding the expected loss of $0.29.
Other analysts have adjusted their targets following the fundraising. Macquarie and Bernstein SocGen each reduced their price targets to $18, while Tiger Securities set a $15 target. InvestingPro data indicates XPeng maintains a "GOOD" financial health score, with cash exceeding debt on its balance sheet.
