XPeng, Inc. ADR ( (XPEV) ) has fallen by -11.24%. Read on to learn why.
XPeng, Inc. ADR has experienced a notable decline in its stock price, dropping by 11.24% over the past week. Despite a recent boost in its price target from $7 to $20 by Barclays, the stock’s valuation has been deemed ‘stretched’ following a significant rally in recent months. This cautious stance by Barclays, maintaining an Underweight rating, suggests that the recent price surge may not be sustainable in the short term.
The company’s vehicle deliveries have shown impressive growth, with Q4 and early Q1 figures more than tripling those of the first half of 2024. This growth, coupled with a strong momentum in model refreshes and new product launches anticipated for 2025, paints a promising picture for XPeng’s future. However, the current high valuation has led to mixed analyst opinions, with some firms adjusting their price targets and ratings accordingly.
JPMorgan and BofA have also adjusted their price targets for XPeng, reflecting both optimism and caution. While JPMorgan lowered its target from $35 to $31, it maintained an Overweight rating, highlighting strong sales volumes but also increased R&D expenses. BofA, on the other hand, raised its target from $18.60 to $27, maintaining a Buy rating based on expected vehicle deliveries and future sales growth. These varied perspectives underscore the complex dynamics at play in XPeng’s stock performance, as investors weigh the potential for growth against current valuation concerns.