Written by Cláudio Afonso | LinkedIn | X
JPMorgan analyst Nick Lai issued a new research note on Monday, adding XPeng to the firm’s “Positive Catalyst Watch” list, citing expectations of positive news from the upcoming Tech Day and “solid” third-quarter earnings results.
While reiterating an Overweight rating and a $14.00 price target on the U.S.-listed stock, the analyst is also confident in the brand’s upcoming new product strategy.
“We are placing XPeng on Positive Catalyst Watch ahead of two important near-term events- 1) Oct 24th XPeng Technology Day where we anticipate various new initiatives and 2) Late Nov 3Q24 result announcement where we expect a beat,” Nick Lai noted.
Based on Friday’s closing price of XPeng U.S.-listed shares of $10.49, JP Morgan’s price target implies an upside potential of 33.46%.
“In addition to our positive sector stance into the year-end (i.e. 35% QoQ PV growth in 4Q24 vs. seasonality ~20%, XPeng’s upcoming new product strategy, advancing inhouse technology and solid 3Q earnings as well as strength in 4Q vehicle delivery should altogether support its share price,” the analyst wrote.
“Our PTs [price targets] (US$14/ HK$53) represent ~30-40% upside,” he added.
On Monday, HK-listed shares closed 2.94% lower at HK$41.20.
The company has recently rolled off the production line its first mass-produced XPeng P7+ as deliveries are planned to begin in China in November.
XPeng started pre-sales for the P7+ at the 2024 Paris Motor Show, with the pre-sale price set at 209,800 yuan ($29,530). Customers who pay a 99 yuan deposit will receive a RMB 3,000 yuan discount, equivalent to $422.
On Monday, XPeng reported receiving 30,000 pre-sale orders for the model within one hour and 48 minutes of the Paris debut.
Written by Cláudio Afonso | LinkedIn | X
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