XPeng Gets Price Target Hike After Upbeat Q2 Earnings, Positive Guidance: Retail Hopes Firm Will Hit Profitability Ahead Of Schedule

An analyst raised the price target on XPeng to $26 from $25 while keeping a ‘Buy’ rating on the shares.

Bank of America analyst Ming Hsun Lee raised the firm’s price target on Chinese EV maker XPeng (XPEV) after the company reiterated its goal to achieve profitability by the fourth quarter (Q4).

The analyst raised the price target for the XPeng stock to $26 from $25 while keeping a ‘Buy’ rating on the shares, as per TheFly. Following the second quarter (Q2) earnings report, the firm lowered its 2026 adjusted net profit forecast by 2%, but lifted its 2027 adjusted net profit estimate by 20%, the analyst noted.

James Wu, XPeng’s vice president of finance and accounting, reiterated on the earnings call on Tuesday that the company continues to aim to hit profitability by Q4.

“I would focus on Q4, which we have communicated earlier that we are aiming at profitability in the fourth quarter and that target has not changed,” Wu said, while adding that the company also expects a high-teen gross profit margin (GPM).

On Stocktwits, retail sentiment around XPeng jumped from ‘bearish’ to ‘extremely bullish’ over the past 24 hours, while message volume rose from ‘high’ to ‘extremely high’ levels. Shares of the company traded 5% higher on Tuesday afternoon at the time of writing.

XPEV’s Sentiment Meter and Message Volume as of 2:24 p.m. ET on Aug. 19, 2025 | Source: Stocktwits

A Stocktwits user expressed optimism for the company achieving profitability a quarter ahead of schedule.

For Q2, the company reported revenue of $2.55 billion, representing an increase of 125.3%, and above an analyst estimate of $2.49 billion, according to Koyfin data.

Adjusted net loss per American depositary share (ADS) came in at $0.06, less than the $0.18 reported in the corresponding quarter of 2024, and below an analyst estimate of $0.15.

The company said that it now expects vehicle deliveries to come in between 113,000 and 118,000, representing a year-over-year increase of approximately 142.8% to 153.6%, for the third quarter (Q3). It also expects total revenue to be between RMB19.6 billion ($2.73 billion) and RMB21.0 billion in the period, representing a year-over-year increase of approximately 94.0% to 107.9%.

“Over the next three years, our focus will be on expanding market share, both domestically and internationally, maintaining steady growth and harnessing disruptive AI innovation to enhance value for users worldwide,” CEO He Xiaopeng said.

XPEV stock is up by 76% this year and by about 189% over the past 12 months. 

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