BofA Maintains Buy Rating on XPeng (XPEV) Following Q1 Report

On May 21, BofA lifted the price target on XPeng Inc. (NYSE:XPEV) from $27 to $29 and maintained a Buy rating on the stock.

Ming-Hsung Lee from BofA Securities raised the price target after the company exceeded revenue and earnings estimates for the first quarter of 2025. XPeng surpassed revenue estimates by $17.42 million, posting $2.20 billion in total revenues during Q1.

Lee mentioned that the company’s strong quarterly performance was driven by the bottom-line beat on FX gains and government subsidies. The company’s exchange gain from foreign currency transactions was around $17.97 million, compared to losses from a year ago.

XPeng made a record 94,008 vehicle deliveries in Q1, representing a significant rise of 331% year-over-year. Lee pointed out that the company expects the sales volume to continue to experience robust growth during Q2, driven by the launch of the 2025 models of G6, G9, and Mona Max. The company expects to start the deliveries of G7 and new P7 models in Q3. Whereas the deliveries of new models under the Kunpeng Super Hybrid architecture are expected to begin in Q4 2025. Driven by robust demand, the company projects achieving profitability in Q4.

XPeng Inc. (NYSE:XPEV) is a prominent Chinese Smart EV maker. The company is engaged in the design, production, and sales of Smart EVs. Its SUV (the G3) and a four-door sports sedan (the P7) are two of its most famous models. XPeng primarily targets the mid to high-end segment in China’s passenger vehicle market.

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Disclosure. None.