took in more than 22,000 reservations the hour after the launch. Pricing is due this month and deliveries are due to start in October.
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Yu expects the SUV price to come in around 400,000 yuan, or about $58,000. The G9 SUV will offer the company’s latest computing platform and driver-assistance software. What’s more, it will be able to charge fast enough to get more than 100 miles of range in about 5 minutes—as long as the charger can deliver the electricity quickly enough. Yu expects the SUV to be a strong seller for two or three quarters.
The G9 is a reason to buy the stock now, but Yu has been an XPeng fan for a while—he’s had a Buy rating on the ADRs since launching coverage back in 2020. He has a $33 price target.
XPeng stock looks like it needs a catalyst. Through Tuesday trading, ADRs are down about 68% year to date. XPeng has delivered more than 90,000 vehicles in 2022, through August. That’s up from about 46,000 vehicles delivered in the first eight months of 2021. Growth looks solid, but higher interest rates, Covid-19 lockdowns in China, and Chinese/American geopolitical tensions have all weighed on investors sentiment.
The declines have left XPeng trading for roughly 1.3 times estimated 2023 sales, down from about 4 times at the start of 2022.
(LI) trades for about 2.1 times sales, down from about 4.6 times at the start of the year. The three Chinese EV makers aren’t consistently profitable yet.
The bullish called seemed to help XPeng stock. ADRs traded higher for parts of the day before closing down 1.3% at $16.14. That’s not bad considering the entire market was crushed after an inflation report came in hotter than expected. The
XPeng Stock Is About to Go Higher, Says Analyst
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XPeng stock can gain in coming months, according to Deutsche Bank analyst Edison Yu.
Hector Retamal/AFP via Getty Images
Sometimes timing is everything. And Deutsche Bank believes now is the time to buy beaten-up shares of Chinese electric vehicle maker
XPeng
.
Tuesday, analyst Edison Yu placed a “catalyst Buy call” on American depositary receipts.
A catalyst call is used by some brokers to demonstrate a sense of urgency because they expect the stock to move soon and for identifiable reasons.
In the case of
XPeng
(ticker: XPEV), Yu is looking at the launch of the G9, a new SUV unveiled this Summer.
XPeng
took in more than 22,000 reservations the hour after the launch. Pricing is due this month and deliveries are due to start in October.
Newsletter Sign-up
The Barron’s Daily
A morning briefing on what you need to know in the day ahead, including exclusive commentary from Barron’s and MarketWatch writers.
Yu expects the SUV price to come in around 400,000 yuan, or about $58,000. The G9 SUV will offer the company’s latest computing platform and driver-assistance software. What’s more, it will be able to charge fast enough to get more than 100 miles of range in about 5 minutes—as long as the charger can deliver the electricity quickly enough. Yu expects the SUV to be a strong seller for two or three quarters.
The G9 is a reason to buy the stock now, but Yu has been an XPeng fan for a while—he’s had a Buy rating on the ADRs since launching coverage back in 2020. He has a $33 price target.
XPeng stock looks like it needs a catalyst. Through Tuesday trading, ADRs are down about 68% year to date. XPeng has delivered more than 90,000 vehicles in 2022, through August. That’s up from about 46,000 vehicles delivered in the first eight months of 2021. Growth looks solid, but higher interest rates, Covid-19 lockdowns in China, and Chinese/American geopolitical tensions have all weighed on investors sentiment.
The declines have left XPeng trading for roughly 1.3 times estimated 2023 sales, down from about 4 times at the start of 2022.
NIO
(
NIO
), by comparison, trades for about 2.2 times estimated 2023 sales, down from about 3.1 times at the start of the year.
Li Auto
(LI) trades for about 2.1 times sales, down from about 4.6 times at the start of the year. The three Chinese EV makers aren’t consistently profitable yet.
The bullish called seemed to help XPeng stock. ADRs traded higher for parts of the day before closing down 1.3% at $16.14. That’s not bad considering the entire market was crushed after an inflation report came in hotter than expected. The
S&P 500
and
Nasdaq Composite
fell 4.3% and 5.2%, respectively.
Write to Al Root at [email protected]
Source: https://www.barrons.com/articles/ev-stock-xpeng-buy-analyst-51663080141?siteid=yhoof2&yptr=yahoo