- Shares of Xpeng Inc ((NYSE: XPEV)) have received a price target increase from $43 to $51.10 by Bank of America. These are the details.
Shares of Xpeng Inc ((NYSE: XPEV)) have received a price target increase from $43 to $51.10 by Bank of America. And Bank of America Securities analyst Ming-Hsun Lee also reiterated a “Buy” rating on Xpeng.
Lee increased the price target after Xpeng facilitated a public offering of 48 million shares in order to raise more than $2 billion. Lee pointed out that Xpeng now has the money it needs to fund growth and other near-term catalysts.
For example, Xpeng had offered a free charging service across 24 cities in China in September and now that same initiative expanded to 100 cities. This year, Xpeng is looking to double the total to 200 cities.
Lee pointed out that Xpeng’s fast-charging network is going to help drive brand loyalty and drive long-term sales growth. Plus Xpeng has a number of key product launches for this year.
In the fourth quarter of this year, Lee is predicting that Xpeng is going to unveil a third model — which will be a sedan. And the company will also launch an upgraded version of the G3 and a lithium iron phosphate battery version of the G3 at a lower price.
Going forward, Lee is projecting a 61% compound annual revenue growth for Xpeng through 2025.
Disclosure: I have a small XPEV position in my portfolio.