BofA Securities Reiterates Buy on XPeng, $19 PT
BofA Securities analyst Ming Hsun Lee reiterated a Buy rating and $19 price target on XPeng (NYSE: XPEV)
“On August 24, Xpeng Group announced the completion of the first external financing round for its humanoid robotics (HR) business.
Dogotix, XPENG’s humanoid robotics subsidiary, raised approximately US$900mn through a combination of investments from XPENG (US$200mn), external investors including IDG Capital, Alibaba, Tencent and Gaorong Ventures (US$600mn), and management participation (US$100mn).
The transaction implies a pre-money valuation of US$5.0bn and a post-money valuation of US$6.3bn.
Following completion of the financing, XPENG is expected to retain an aggregate equity interest of approximately 73.8% in Dogotix.
Even assuming full exercise of management warrants, full utilization of the 15% equity incentive plan, and issuance of the reserved shares for an additional investor, XPENG’s ownership would remain at approximately 68.41%.
This fund raising also sets a new record for a single private equity financing round in China’s embodied AI sector.”
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