07:15 AM EDT, 06/02/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our target price of USD20 (up from USD8) implies a 2025 P/S of 1.5x, a discount to global electric vehicle peers' P/S average of 3.3x, justified in our view by its second-tier market position. We project revenue to rise 117%/24% to CNY88.8B/CNY110.1B in 2025/2026, assuming (i) 180%/30% growth in car deliveries, supported by new models and facelifts, as well as penetration into new markets, (ii) 18%/5% decline in average selling price due to higher sales mix of cheaper models and price reductions amid intensified competition, and (iii) 30% growth p.a. for services and others segment. Despite rising sales & marketing expenses and elevated R&D spending, we expect operating losses to narrow in 2025, supported by improved operating leverage, ongoing cost reduction initiatives, and supply chain optimizations. We also anticipate XPeng ( XPEV ) to achieve a modest operating profit in 2026. We trim our loss per ADS estimate for 2025 to CNY1.86 (from CNY2.79) and lift earnings per ADS for 2026 to CNY1.74 (from CNY1.06).