JPMorgan Cuts XPeng (NYSE:XPEV) Stock Price Expectations

On March 21, 2025, investment analysts from JPMorgan Chase & Co. announced a reduction in their price target for XPeng (NYSE:XPEV) from $35.00 to $31.00. This adjustment was highlighted in a report released on Wednesday, and despite the decrease, the brokerage maintains an “overweight” rating on the stock. The new price target indicates a potential upside of 40.49% based on the company’s closing price prior to this announcement.

Other analysts have also provided their insights on XPeng's stock. On the same day, Daiwa Capital Markets reiterated a “neutral” rating and established a $24.00 price target for shares of XPeng. Earlier, Macquarie had also set a “neutral” rating with a target of $18.00 on February 7. UBS Group upgraded XPeng from a “sell” rating to “neutral,” increasing their price target to $18.00 on February 24. In contrast, Citigroup upgraded XPeng from “neutral” to “buy,” raising their target price from $13.70 to $29.00 on March 10. Meanwhile, The Goldman Sachs Group downgraded their rating from “buy” to “neutral,” with a target price set at $12.50 on November 21 of the previous year. Currently, XPeng has mixed ratings with one analyst giving it a sell rating, five assigning a hold rating, five classifying it as a buy, and two issuing strong buy ratings, resulting in a consensus rating of “Moderate Buy” with an average target price of $21.84 according to MarketBeat.com.

Recent Stock Performance

As of Wednesday, XPeng's shares opened at $22.07. The company boasts a market capitalization of $20.79 billion and presents a PE ratio of -25.36 with a beta of 2.68, indicating higher volatility than the market. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.37, and a quick ratio of 1.18. Over the last fifty days, XPeng averages $18.10, while the two-hundred-day moving average sits at $13.92. Over the past year, shares have fluctuated between a low of $6.55 and a high of $27.16.

The latest quarterly earnings report released on March 18 revealed that XPeng reported earnings per share (EPS) of ($0.19), exceeding analyst expectations, which forecasted an EPS of ($1.36). Additionally, the company generated revenue of $2.21 billion in the quarter, markedly lower than the consensus estimate of $16.11 billion. The firm reported a negative return on equity of 16.92% and a negative net margin of 15.35%. Analysts predict that XPeng will post an EPS of -0.96 for the current year.

Institutional Investments

Recently, several institutional investors have adjusted their stakes in XPeng. Notably, Alibaba Group Holding Ltd increased its position by 21.2% in the last quarter, acquiring 6,650,000 additional shares and is now valued at approximately $448,678,000. TMT General Partner Ltd also made a significant investment, purchasing shares valued at about $205,501,000. Additionally, JPMorgan Chase & Co. dramatically expanded its position by 1,138.1% in the fourth quarter, acquiring 4,227,055 shares for a total holding now valued at $54,354,000. Point72 Hong Kong Ltd has also joined as a new investor, purchasing shares valued at around $22,047,000. Another notable investment was made by OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC, which increased their position by 947.5%, currently holding 1,759,750 shares valued at $20,800,000. Institutional investors currently own 21.09% of the circulating stock.

Overview of XPeng

XPeng Inc. is engaged in the design, development, manufacturing, and marketing of smart electric vehicles (EVs) within China. Their product lineup includes various SUVs such as the G3, G3i, G9, as well as sports sedans like the P7 and P7i, along with family sedans under the P5 name. The company also provides additional services including vehicle leasing, insurance, technical support, maintenance, auto financing, and ride-hailing services.

XPeng, Investment, Analysts