Jefferies reiterates Buy rating on XPeng stock, citing path to profitability

Investing.com - Jefferies has reiterated its Buy rating and $29.00 price target on XPeng (NYSE:XPEV) following the company’s first-half 2025 results and a post-result non-deal roadshow in Hong Kong. The stock has shown remarkable momentum, delivering a 100.93% return year-to-date according to InvestingPro data.

The Chinese electric vehicle maker’s 1H25 performance exceeded expectations, primarily driven by strong margins resulting from economies of scale, according to Jefferies.

The research firm sees a clear path to profitability for XPeng by the fourth quarter of 2025, with mass deliveries of the G7 model and new P7 vehicle beginning.

Jefferies views XPeng’s technology DNA as its most differentiated competitive advantage, combining rapid product innovation, AI leadership, and global expansion efforts to establish the company as a top-tier electric vehicle manufacturer.

The firm also highlighted the chairman’s share buyback as a sign of confidence in XPeng’s future trajectory.

In other recent news, XPeng has been the focus of several analyst updates and company developments. HSBC increased its price target for XPeng to $29.60, maintaining a Buy rating on the stock. BofA Securities also raised its price target to $26.00, citing a strong forecast for vehicle deliveries and revenue growth in the third quarter of 2025. XPeng management expects to deliver between 113,000 and 118,000 vehicles, with projected revenue reaching RMB 19.6-21 billion, marking significant year-over-year growth. Tiger Securities reiterated its Buy rating with a $28.00 target, emphasizing XPeng’s promising growth trajectory and path to profitability.

Macquarie raised its price target to $25.00, highlighting potential vehicle margin expansion despite XPeng’s first-quarter net loss being partially offset by other gains. Additionally, XPeng showcased its advancements in autonomous driving technology at the 2025 Conference on Computer Vision and Pattern Recognition in Nashville. The company was the only Chinese automaker invited to present, participating in discussions with notable industry leaders. These developments reflect XPeng’s ongoing efforts to enhance its technology and market position in the electric vehicle sector.

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