Xpeng Inc Stock Analysis:
JP Morgan Downgrades Xpeng Inc. to a Neutral rating and lowers the target price to $9 from $11 on the company’s stock.
J.P. Morgan’s current analysis on the stock of Xpeng, a China-based electric vehicle manufacturer. It appears that J.P. Morgan has backed away from its previous bullish call on the stock, meaning they were previously bullish on the stock. The reason cited by J.P. Morgan analyst Nick Lai is that the “reopening trade” in auto stocks has been overdone, specifically in relation to the COVID-19 pandemic and the recent relaxation of restrictions in China.
Analyst Nick Lai has mentioned that, as the earnings expectations have yet to catch up, he fears that the reopening rally in auto stocks could “run out of steam” in the near term. He also added, “We note the recent rally has priced in a rosy scenario while corporate earnings and underlying industry data are still lagging”, this statement from the analyst indicates that he believes the recent rally in Xpeng’s stock price may have been driven by speculation rather than fundamentals and there’s a risk that the stock’s recent gains may not be sustainable.
Meanwhile STA Research maintains the Speculative Buy on Xpeng Inc. with a target price of $12.
XPEV Stock Analysis and Forecast
The average analyst target price for Xpeng Inc over the next 12 months is USD 15.20, according to 12 analysts’ stock projections for the company. The typical analyst rating for Xpeng Inc. is Buy. Xpeng Inc’s stock analysis by Stock Target Advisor is Bearish and is based on 2 good signs and 7 negative indications. The stock price of Xpeng Inc. was USD 10.09 at the most recent closing. The stock price of Xpeng Inc. has fluctuated by -0.09% over the previous week, -0.85% over the previous month, and -77.95% over the previous year.
Fundamental Stock Analysis:
Positive Fundamentals:
Minimal debt:
The company is more flexible since it is less leveraged than its competitors and is in the top quartile. However, keep an eye on the news and consider the industry. This is occasionally low because there is no room for future expansion at the organisation.
Superior growth in revenue:
Compared to its industry, this stock’s revenue growth over the previous five years has been in the top quartile.
Negative fundamentals:
Low market capitalization:
This is one of the less significant companies in its industries with a market capitalization below the average. If it doesn’t have a distinct technology or market that can help it develop or be purchased in the future, it may make it less stable in the long run.
Inadequate risk-adjusted returns:
In comparison to its rivals, this company’s risk-adjusted return performance is below average. The returns are unpredictable, even if it is outperforming in terms of returns. Be careful as you go.
High turbulence:
Over the past five years, this company’s total returns have been erratic and higher above the industry average. If you plan to invest in such a stock, be sure your risk tolerance is adequate.
Lower than average dividend returns:
In comparison to its competitors, the company’s average income yield during the past five years has been low. If you are not seeking for work, it is not an issue.
Poor cash flow:
The last four quarters saw a negative total cash flow for the organization.
Free cash flow that is negative:
In the last four quarters, the company’s overall free cash flow was negative.
Low growth in earnings:
Compared to its sector, this stock’s five-year median earnings growth was lower than average.
About XPeng Inc:
XPeng Inc. is a Chinese company that specializes in the design, development, manufacture, and marketing of smart electric vehicles (EVs). The company offers a range of EV models, including SUVs under the G3 and G3i names, four-door sports sedans under the P7 name, and family sedans under the P5 name. In addition to selling vehicles, XPeng Inc. also provides a range of related services to its customers, including sales contracts, maintenance, super charging, vehicle leasing, insurance agency, ride-hailing, technical support, automotive loan referral, auto financing, music subscription, and more. The company was founded in 2015 and is headquartered in Guangzhou, China. It is one of the EV startups that has grown rapidly in China along with companies like NIO and Li Auto.
