Goldman Sachs Upgrades XPeng’s Rating to Buy

Goldman Sachs analyst Tina Hou upgraded XPeng from ‘Neutral’ to ‘Buy’ with a price target of $24.

“We upgrade XPeng to Buy with 12-month target prices of US$24/HK$94, implying 29%/27% upside potential, as we see the result of a series of efforts (including organization and supply chain restructuring, technology cost-down, platformization) coming through that has transformed the company’s product and cost structure competitiveness, leading to higher visibility for sustainable sales volume growth as well as profit margin improvement going forward.

Our 2025E-2026E non-GAAP net profit estimates are 23%-26% higher than Visible Alpha consensus, mainly on 8%-13% higher volume assumptions.

Catalysts will be upcoming product launches including the G7/P7 in 3Q and EREV [Extended Range Electric Vehicle] in 4Q, as well as quarterly results.”

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