XPeng’s stock price target was reduced to $22 from $25 by Freedom Broker, which maintained a Buy rating amid ongoing challenges in the Chinese electric vehicle market.
The brokerage cited persistent weak demand and intensified price competition as key factors behind the adjustment. XPeng’s shares, trading at $11.50, remain close to their 52-week low of $11.10, reflecting a 52% decline over the past year. Despite these pressures, the company reported a 25% revenue increase over the last twelve months, with a gross profit margin of 20.85%.
Second-quarter results showed revenue of RMB 19.7 billion, an 8% year-over-year increase and a 51.5% rise from the prior quarter. However, vehicle revenue grew by just 1% annually, with growth driven primarily by services and other segments, including contributions from Volkswagen. Adjusted net profit fell short of Bloomberg consensus estimates.
Freedom Broker’s downgrade follows broader concerns about the Chinese auto market’s weakness, though it acknowledged signs of recovery in deliveries and the resilience of XPeng’s gross margin. The company’s focus on premiumization, new model launches, and AI-driven technologies was also noted as a positive.
Other analysts have similarly adjusted their outlooks. Barclays lowered its price target to $14 while maintaining an Underweight rating, citing delivery growth concerns for Q3 2026. Macquarie reduced its target to $18 but kept an Outperform rating, attributing the move to lower peer valuations. Tiger Securities cut its target to $15, maintaining a Hold rating due to mixed Q2 results and a weaker short-term delivery outlook.
BofA Securities reiterated a Buy rating with a $19 price target, citing progress in XPeng’s humanoid robotics unit, Dogotix, which secured approximately $900 million in funding. Bernstein SocGen Group adjusted its target to $18 but maintained a Market Perform rating, highlighting wider losses across the sector.
