XPeng (NYSE: XPEV) Price Target Lowered by BofA Securities to $10
BofA Securities has adjusted its outlook on XPeng (NYSE: XPEV), lowering the price target to $10 from $11 while maintaining a Buy rating on the stock. This adjustment comes after XPeng's second-quarter financial results announcement on August 20, revealing impressive growth figures.
XPeng reported a 60% year-over-year revenue increase, totaling 8.1 billion yuan, and a 24% rise from the previous quarter. The gross profit margin (GPM) also saw a significant improvement, reaching 14%, surpassing expectations of 12.8%.
The company's vehicle margin stood at 6.4%, a 15 percentage point increase year-over-year, outperforming analyst estimates. Despite these positive results, XPeng still reported a net loss for the quarter.
InvestingPro Insights reveal that XPeng holds more cash than debt on its balance sheet, providing stability against market fluctuations. The company's market capitalization is $6.41 billion, and the stock is trading near its 52-week low, potentially presenting a buying opportunity for investors.
While XPeng has shown substantial revenue growth, investors should carefully consider the lack of profitability and net losses. Traders should be aware of the stock's volatility in the Automobiles industry, offering both risks and opportunities.
For more in-depth analysis and tips on XPeng's financial health and future prospects, InvestingPro provides additional insights to help investors make informed decisions.