Bank of America Raises XPeng Price Target to $25

BofA Securities analyst Ming Hsun Lee raised the price target on XPeng (NYSE: XPEV) to $25.00 (from $24.00) while maintaining a Buy rating.

“Supported by better-than-expected GX orders, management expects to deliver 100-106k units of vehicle (down 3%- up 3% YoY) in 2Q26. XPeng expects its 2Q26 GPM to be largely flat QoQ, aided by better product mix (GX features highest GPM among vehicle models), partially offset by rising material costs.

Starting with GX, XPeng is rolling out four SUV models, supporting sequential volume growth in 2Q-4Q26.

Factoring in 1Q26 results and latest outlook, we lift 2026/27/28E volume sales by 5%/5%/5%, adjust 2026/27/28E GPM by +1.3ppt/-0.3ppt/-0.7ppt, and lower OPEX to sales ratio by 0.9ppt/0.4ppt/0.4ppt.

Net-net, we narrow 2026E non-GAAP net loss, widen 2027E nonGAAP net loss, and expect 2028 to record non-GAAP net loss.

Our new PO is USD25/ADS or HKD98/share (was USD24/ADS or HKD94/share) (see detailed inside). Reiterate Buy as we see new business (robotaxi, humanoid robot) to support its valuation.”

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