Skip to main content

Market Overview

BofA Raises XPeng Price Target, Sees More Upside Ahead For EV Stock

BofA Raises XPeng Price Target, Sees More Upside Ahead For EV Stock

Xpeng Inc - ADR (NYSE: XPEV) was one of 2020's hottest electric vehicle stocks, and one Wall Street analyst said Thursday that investors can expect the XPeng rally to continue in 2021.

The XPeng Analyst: BofA Securities analyst Ming Hsun Lee reiterated a Buy rating on XPeng and raised the price target from $43 to $51.10.

Related Link: What Burst The Dot-Com Bubble, And Will It Happen Again In 2021?

The XPeng Thesis: BofA's price target hike comes after XPeng completed a $2.8-billion rights issue earlier in December. Following the fundraising round, Lee said XPeng has the cash it needs to fund its growth and plenty of near-term catalysts ahead.

XPeng launched a free charging program in 24 cities in China back in September and has already expanded that program to 100 cities, the analyst said.

XPeng is looking to double that total to 200 cities in 2021, and Lee said the fast-charging network will help build the company’s brand loyalty and increase its long-term sales growth.

In addition, XPeng has several key product launches expected in 2021.

The analyst is projecting the company’s third model, a sedan, will hit the market in the fourth quarter of 2021. In addition, the company is expected to launch an upgraded version of the G3 and a lithium iron phosphate battery version of the G3 at a lower price point.

Lee is projecting 61% compound annual revenue growth for XPeng through 2025.

"We remain positive on XPeng’s long-term share gain and improving profitability."

Click here to check out Benzinga's EV Hub for the latest electric vehicle news.

Benzinga’s Take: There are plenty of reasons for investors to be excited about XPeng’s future, but the stock is already up 125.2% in the last three months and trading at 86 times sales.

As is the case with many of the hottest EV stocks, some tremendous long-term success is already priced into the stock at today’s levels.

Photo courtesy of XPeng. 

Latest Ratings for XPEV

Jan 2021Morgan StanleyInitiates Coverage OnOverweight
Jan 2021JefferiesInitiates Coverage OnHold
Jan 2021B of A SecuritiesMaintainsBuy

View More Analyst Ratings for XPEV
View the Latest Analyst Ratings


Related Articles (XPEV)

View Comments and Join the Discussion!

Posted-In: BofA Securities electric vehicles EVs Ming Hsun LeeAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

FSRMorgan StanleyMaintains40.0
MEDDA DavidsonMaintains302.0
VICRBWS FinancialMaintains120.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at