BofA Securities Reiterates Buy Rating on XPeng (XPEV)

BofA Securities analyst Ming Hsun Lee reiterated a Buy rating and $19.00 price target on XPeng (NYSE: XPEV)

The analyst comments: “On August 24, Xpeng Group announced the completion of the first external financing round for its humanoid robotics (HR) business. Dogotix, XPENG’s humanoid robotics subsidiary, raised approximately US$900mn through a combination of investments from XPENG (US$200mn), external investors including IDG Capital, Alibaba, Tencent and Gaorong Ventures (US$600mn), and management participation (US$100mn). The transaction implies a pre-money valuation of US$5.0bn and a post-money valuation of US$6.3bn. Following completion of the financing, XPENG is expected to retain an aggregate equity interest of approximately 73.8% in Dogotix. Even assuming full exercise of management warrants, full utilization of the 15% equity incentive plan, and issuance of the reserved shares for an additional investor, XPENG’s ownership would remain at approximately 68.41%. This fund raising also sets a new record for a single private equity financing round in China’s embodied AI sector.”

For an analyst ratings summary and ratings history on XPeng click here. For more ratings news on XPeng click here.

Shares of XPeng closed at $11.15 yesterday.

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