XPeng Q4 Sales Reach RMB20.38 Billion as Citi Cuts to $27.60, JPMorgan to $34
Citi cut price objective to $27.60 from $28.40 and JPMorgan trimmed target to $34 from $50 while retaining Buy ratings, citing China vehicle growth slowdown. Xpeng reported Q4 sales of RMB20.38 billion with 20.1% gross margin, launched start-stop charging payments in Hong Kong and saw EPS estimates cut 33.5% to -$0.23.
1. Analyst Price Target Revisions
On February 6, Citi cut XPeng’s price objective to $27.60 from $28.40 while maintaining a Buy rating, and on February 9 JPMorgan trimmed its target to $34 from $50 with an Overweight rating, citing a forecast of slowing China vehicle growth.
2. Q4 Financial Performance
In the fourth quarter, XPeng generated RMB20.38 billion in sales, achieved a 20.1% gross margin and a 13.1% vehicle margin, reflecting continued cost control and revenue growth in core electric models.
3. Hong Kong Charging Payment Launch
With Antom’s assistance, XPeng introduced a start-and-stop charging payment feature in Hong Kong via its app, allowing users to scan charging pile QR codes and pay through AlipayHK, enhancing customer convenience.
4. Earnings Estimate Revisions and Outlook
Consensus EPS estimates for the year dropped by 33.5% to a negative $0.23, prompting a Zacks Rank #4 (Sell) and signaling analysts’ growing concern over near-term profitability.