Wall Street closes at a record for the first time since end of January
Investing.com - Bernstein SocGen Group raised its price target on XPeng stock (NYSE:XPEV) to $22.00 from $21.00 while maintaining a Market Perform rating. The stock currently trades at $17.55, down from its previous close of $19.15.
XPeng reported fourth-quarter revenue of RMB 22.3 billion, up 38.2% year-over-year and 9.2% quarter-over-quarter, and net profit of RMB 383 million, representing a 1.7% margin. The quarter marked XPeng’s first positive profit, supported by growth in services and other revenue, including higher-margin tech research and development services provided to Volkswagen, alongside parts, accessories, and carbon credit sales. According to InvestingPro data, the stock appears undervalued at current levels, though shares have declined 12.6% over the past week. For deeper insights, investors can access the comprehensive Pro Research Report covering XPEV and 1,400+ other US equities.
Volkswagen’s first model on XPeng’s platform, the ID.UNYX 08, launched in early March. The core electric vehicle business posted a 13% vehicle margin despite a more favorable X9 mix.
XPeng spent RMB 4.5 billion on artificial intelligence investment in 2025 and plans to spend RMB 7 billion in 2026. The company is developing VLA 2.0 and humanoid technology as part of its ambition to become a global leader in physical AI agents.
Bernstein SocGen noted limited visibility on commercial timelines for the AI initiatives in the near to potentially medium term.
In other recent news, XPeng reported solid fourth-quarter 2025 results with total revenues reaching RMB22.25 billion, marking a 38% increase year-over-year, and a gross margin expansion to 21.3%. Despite this positive performance, US Tiger Securities downgraded XPeng to Hold from Buy, citing valuation concerns while setting a price target of $20.00. Morgan Stanley maintained an Overweight rating on XPeng, keeping its price target at $34.00, and highlighted the company’s strategic guidance, which includes a target of approximately 20% group gross profit margin in the first quarter of 2026. The firm expects mid- to high teens group gross profit margin for the full year, supported by overseas sales and scale benefits, although a sequential contraction in gross profit margin is anticipated in the second half of 2026.
Barclays lowered XPeng’s price target to $16.00 from $17.00, maintaining an Underweight rating due to the company’s first-quarter delivery guidance falling slightly below expectations. The firm pointed out challenges for new energy vehicles in China in 2026, as government tax incentives are reduced. Macquarie also downgraded XPeng to Neutral from Outperform, lowering the price target to $19.00, based on concerns about volume growth for the year. Additionally, Stellantis is reportedly exploring deals with Chinese carmakers, including XPeng, for potential investments in its European operations, which could involve acquiring stakes in brands like Maserati.
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