BofA Increases XPeng Stock Target to $25 Amid Strong Demand for GX Model
BofA raises XPeng stock price target to $25 on strong GX orders
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BofA Securities has raised XPeng's stock price target to $25 from $24, maintaining a Buy rating, as the company reports strong orders for its GX model. Currently trading at $16.52, XPeng has a market cap of $15.8 billion and expects to deliver between 100,000 to 106,000 units in Q2 2026.
- 01XPeng's revenue grew by 88% over the past year, reflecting strong market momentum.
- 02The GX model, which has the highest gross profit margin in XPeng's lineup, is expected to drive sequential growth throughout 2026.
- 03BofA raised its sales volume estimates for XPeng by 5% for 2026, 2027, and 2028.
- 04XPeng recorded its first positive net profit of RMB 383 million in Q4 2025, with a margin of 1.7%.
- 05Analysts project XPeng will incur non-GAAP net losses in the upcoming years despite a strong product offering.
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BofA Securities has increased its price target for XPeng (NYSE:XPEV) to $25.00 from $24.00, maintaining a Buy rating on the electric vehicle manufacturer. The stock is currently trading at $16.52, indicating significant upside potential. The upgrade follows better-than-expected orders for XPeng's GX model, which is anticipated to support volume growth as the company expects to deliver between 100,000 and 106,000 vehicle units in the second quarter of 2026. XPeng's revenue has surged by 88% year-over-year, and it achieved its first positive net profit of RMB 383 million in Q4 2025. Despite this growth, analysts from BofA project non-GAAP net losses for XPeng in 2026, 2027, and 2028, as rising material costs may offset gains from improved product mix. The company is also set to showcase its VLA 2.0 intelligent driving system at the upcoming Beijing Auto Show, further enhancing its product portfolio.
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XPeng's growth and new product offerings may influence the electric vehicle market dynamics in China, particularly as it navigates challenges in the sector.
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