Macquarie has trimmed its price target for Chinese electric vehicle maker XPeng to $18 from a prior level, citing broader valuation pressures in the sector.
The brokerage reiterated an Outperform rating for XPeng’s shares, though it reduced its H-share target by 4% and its American Depositary Receipt (ADR) target by 5%. The current trading price for XPeng’s ADR stands at $11.15, near its 52-week low of $11.49.
XPeng reported second-quarter revenue of RMB 19.7 billion, a year-over-year increase of 8% and a sequential rise of 51.5%. The company’s gross profit margin reached 20%, exceeding consensus estimates. However, adjusted earnings per share came in at a negative $1.29, wider than the Wall Street forecast loss of $0.29. Quarterly revenue fell short of the $20.57 billion consensus.
Macquarie noted that XPeng’s second-quarter volume and revenue aligned with expectations, while gross margins outperformed. Adjusted net income, however, missed Bloomberg consensus projections. Vehicle revenue grew modestly by 1% year-over-year, with services and other revenue—including contributions from Volkswagen—driving the overall increase.
Looking ahead, Macquarie described XPeng’s third-quarter volume guidance as weak. Management indicated that fourth-quarter sales could accelerate, with monthly deliveries projected to reach approximately 60,000 units.
Other analysts have also adjusted their outlooks for XPeng. Bernstein SocGen Group set a price target of $18 while maintaining a Market Perform rating. Tiger Securities lowered its target to $15, citing mixed quarterly results and a weaker near-term delivery outlook.
