01:50 AM EDT, 08/20/2025 (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 USD22 (up from USD20) implies a 2026 P/S of 1.4x, a discount to the global electric vehicle peers' P/S average of 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) an 18%/5% decline in average selling prices due to higher sales mix of cheaper models and price reductions amid intensified competition; and (iii) 30% growth p.a. for the Services and Others segment. Despite rising sales and 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 keep our 2025 loss per ADS estimate at CNY1.86 and 2026 earnings per ADS forecast at CNY1.74.