UPDATE: XPeng (XPEV) PT Raised to $50.30 at Citi
- Nasdaq ends sharply higher as Alphabet and AMD fuel AI surge
- Broadcom annual guidance falls short after Q4 results beat; hikes dividend
- Stocks could be in 'panic' mode in 2024, warns JPM's Kolanovic
- Lululemon Athletica Q3 results top estimates, but revenue guidance falls short
- Can S&P 500 rally without the Magnificent 7 leading the way? 'Easy' says BofA
Citi analyst Jeff Chung raised the price target on XPeng (NYSE: XPEV) to $50.30 (from $50.00) while maintaining a Buy rating.
The analyst comments "Terminal value suggests XP > NIO: We estimate the terminal value on XPeng with the following conclusion – Ultimate XPeng market cap is equivalent to US$32.2bn vehicle market cap + US$43bn software earnings market cap (total at US$75.3bn, 87% higher than market cap calculated based on our P/S driven TP). Comparing with NIO, its market cap based on terminal value was only 1% higher than market cap based on P/S driven TP. Our estimation has factored in (1) For vehicle market cap we discount the terminal value by assuming XPeng’s matured blended-ASP to be Rmb175k and annual sales volume 244k/745k units by 2025E/30E (3.1% of 2025E China NEV market shares) warrant a potential 8% NPM and 8x divisional PER in 2025E; (2) For software business we apply the same methodology by assuming 100% auto-pilot take-rate in in 2030E, and ASP at Rmb10k per vehicle (all-in price upon purchase) by 2030E, warranting a 15x divisional PER."
You May Also Be Interested In
- Morgan Stanley Downgrades Qualcomm (QCOM) to Equalweight 'strong execution in early stage of 5G cycle sets up for tough comparisons'
- Rolls-Royce Holdings Plc. (RR/:LN) (RYCEY) PT Raised to GBP4 at Deutsche Bank
- Morgan Stanley Upgrades Qorvo Inc (QRVO) to Overweight, 'volume recovery should lead to margin improvement'
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesCiti, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!