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XPeng upgraded to Buy from Neutral at BofA

XPeng upgraded to Buy from Neutral at BofA

BofA analyst Ming Hsun Lee upgraded XPeng (XPEV) to Buy from Neutral with a price target of $22, up from $16.30. XPeng’s cooperation with Volkswagen (VWAGY) endorses the company’s autonomous driver capabilities, which improves its financial position and likely enhances its supply chain management, the analyst tells investors in a research note. The firm now expects Xpeng to turn a profit in 2025 versus a net loss in its previous forecast. It believes the company’s improving cost structure and VW pact will drive positive free cash flow in 2025.

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