Macquarie has lowered its price target for Chinese electric vehicle maker XPeng to $18 from a prior level, maintaining an Outperform rating as peer valuations decline amid rebuilding volume momentum.
The brokerage reduced its H-share target by 4% and its U.S. ADR target by 5%, citing broader valuation pressure across the sector. XPeng’s shares were trading at $11.15, near the 52-week low of $11.49.
Other firms have also adjusted their outlooks. Bernstein SocGen Group set a price target of $18 with a Market Perform rating, while Tiger Securities reduced its target to $15.
XPeng reported second-quarter revenue of RMB 19.7 billion, an 8% increase year-over-year and a 51.5% rise quarter-over-quarter, falling short of the RMB 20.57 billion consensus. Adjusted net profit missed estimates, with adjusted earnings per share at a loss of $1.29, wider than the forecasted loss of 29 cents.
Gross profit margin improved to 20%, though vehicle margin remained weak. Revenue growth over the last 12 months reached 48%, driven by services and other segments, including contributions from Volkswagen. Vehicle revenue grew just 1% year-over-year.
Macquarie described third-quarter volume guidance as soft, while XPeng’s management projected fourth-quarter sales acceleration, with monthly volumes expected to reach about 60,000 units.
The company continues to invest in autonomous driving and humanoid robotics as part of its broader strategy.
