Freedom Broker reduced its price target on XPeng to $22 from $25, citing weak demand and intensified price competition in China's electric vehicle market.
The brokerage maintained a buy rating on the stock, which was trading at $11.50 on Tuesday, near its 52-week low of $11.10. XPeng's shares have declined 52% over the past year, despite a trailing twelve-month gross profit margin of 20.85% and revenue growth of 25%.
The adjustment follows second-quarter results that fell short of expectations. Total revenue rose 8% year-over-year to RMB 19.7 billion, a 51.5% increase from the prior quarter. Vehicle revenue grew just 1% annually, with growth driven by services and other segments, including contributions from Volkswagen.
Freedom Broker acknowledged XPeng's operational strengths, including recovery in deliveries, resilient gross margins, and a focus on premiumization, new models, and AI-driven technologies.
Other analysts have also revised their targets. Barclays cut its target to $14 while maintaining an underweight rating, citing third-quarter delivery growth projections. Macquarie adjusted its target to $18 with an outperform rating, and Tiger Securities set its target at $15 with a hold rating. BofA Securities reiterated a buy with a $19 target, while Bernstein SocGen revised its target to $18 with a market perform rating.
XPeng's robotics unit, Dogotix, secured approximately $900 million in financing, highlighting its expansion beyond automotive.
