XPeng investors are getting some needed relief Monday. Still, the Chinese electric-vehicle maker’s American depositary receipts are sitting squarely in the red for long-term holders.
XPeng ADRs (ticker: XPEV) of the Chinese electric-vehicle maker are up 9.1% at $9.68 in early trading Monday. The
S&P 500
and
Nasdaq Composite
are up 0.3% and 0.5%, respectively.
Order numbers for a new vehicle have done it. XPeng said it took in 25,000 orders for its new G6 crossover vehicle, which is a positive for the stock, according to Citi analyst Jeff Chung.
XPeng badly need of a hit. The company’s monthly deliveries peaked at 16,000 units in December 2021. More recently, monthly deliveries have been ranging between roughly 5,000 and 7,000 units.
Falling deliveries have weighed on the stock price. XPeng shares are down about 87% from an all-time high of $74.49 reached in November 2020. Shares are down about 61% over the past 12 months.
The G6 will help, but the company isn’t in the clear yet. Chung writes any rally will be short-lived. There is too much competition in the segment. “Upcoming Denza N7 and
BYD
Sea lion, as well as Zeekr’s new model to be launched around year-end, will pose much bigger competition within this segment,” wrote the analyst on Monday.
Chung is a bear, rating the ADRs at Sell with a $6.28 price target. Apart from the U.S.-listed ADRs, XPeng has stock listed in Hong Kong, and his price target works out to roughly 49 Hong Kong dollars per share.
The average analyst price target for XPeng stock is about $8.30 a share, a little lower than where shares are trading.
Overall, about 57% of analysts covering XPeng rate ADRs at Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 53%. XPeng is a little more popular than the S&P 500 average, but analyst sentiment has been sliding. About 80% of analysts rated XPeng ADRs at Buy at the beginning of 2023.
Write to Al Root at [email protected]
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