BofA Raises XPeng Target On P7, G3i, P5 Prospects

While Xpeng Inc - ADR XPEV is facing strong demand for P7, the G3i launch scheduled for Friday could be the next catalyst, according to BofA Securities.

The Xpeng Analyst: Ming Hsun Lee maintained a Buy rating for Xpeng, while raising the price target from $46 to $53.

The Xpeng Thesis: G3i, the mid-cycle facelift version of G3, is expected to have a more fashionable design and offer superior intelligent performance and intelligent lighting interaction functions, Lee said in the note.

“Meanwhile, our check suggests that recent P7 orders are stronger, partially due to launch of LFP battery version,” Lee added.

“P5, a new EV model set to be shipped in 4Q21, is also seeing stronger pre-orders, aided by more intelligent autonomous driving (XPliot 3.5) functions,” the analyst wrote.

“We expect the introduction of G3i and P5 to enrich XPeng’s intelligent and autonomous driving experience and thus help XPeng to continue the good sales momentum into 2H21 and 2022,” Lee further said.

XPEV Price Action: Shares of Xpeng are up 1.37% to $44.34 at the time of publication Tuesday.