XPeng, Inc.: Promising Growth Driven by AI Advancements and New Models Amidst Market Volatility

DBS analyst Rachel Miu has maintained their bullish stance on 9868 stock, giving a Buy rating yesterday.

Rachel Miu’s rating is based on XPeng, Inc.’s promising growth prospects driven by advancements in AI technology and the introduction of new models. The company’s focus on enhancing AI applications, such as the Turing chip and XNGP platform, positions it well in the competitive autonomous driving market. Additionally, the upcoming launch of XPeng’s first hybrid model in the second half of 2025 is expected to open new revenue streams and potentially accelerate the company’s path to profitability by the end of 2025.
Furthermore, XPeng’s strong financial position, with a healthy cash reserve of RMB42 billion, supports its business expansion plans. Despite recent weaker-than-expected quarterly results, the current share price volatility might present a buying opportunity. The company’s vehicle margins have shown significant improvement, and with projected increases in deliveries, XPeng is poised for valuation growth. Therefore, Rachel Miu maintains a Buy rating with a target price of HKD126/USD32.

In another report released yesterday, Nomura also initiated coverage with a Buy rating on the stock with a HK$113.00 price target.

9868’s price has also changed dramatically for the past six months – from HK$38.050 to HK$88.900, which is a 133.64% increase.