Xpeng Stock Forecast (XPEV:NYE)-Fundamental Analysis is Bearish

Xpeng stock forecast

Xpeng Stock Forecast:

According to 7 analysts’ stock projections for Xpeng Inc. (XPEV:NYE), the company’s average 12-month target price will be USD 14.41. The typical analyst rating for Xpeng Inc. is Buy. Xpeng stock forecast by Stock Target Advisor is Bearish and is based on 2 good signs and 7 negative indications.

The XPEV stock price was USD 6.89 at the most recent closing. Over the past week, +0.00% over the past month, and -86.52% over the past year, the stock price of Xpeng Inc. has changed.

The consensus Crowd Rating on the stock is a Strong Buy, with an average 12-month XPEV stock price target of $39 per share.

Jefferies Financial released a report on Monday, November 28th, updating their coverage on Chinese EV manufacturer, Xpeng Inc. which revealed the analyst downgraded the stock to Hold from a Buy rating.

Jefferies also slashed the 12-month price target to $4.20 from $18.60.  The analyst is citing the “end of the honeymoon phase” for the stock, essentially saying the company received a positive valuation metric based on it’s “New” EV maker sentiment.

 

About Xpeng Inc. (XPEV:NYE)

In the People’s Republic of China, XPeng Inc. designs, develops, produces, and sells smart electric vehicles. It offers family sedans under the P5 moniker, SUVs under the G3 and G3i names, and four-door performance cars under the P7 name.

The business also offers maintenance contracts, supercharging, leasing of vehicles, insurance brokerage, ride-hailing, technical help, referrals for auto loans and auto financing, music subscriptions, and other services. Guangzhou, People’s Republic of China, is home to the headquarters of XPeng Inc., which was established in 2015.

 

News:

Xpeng stock forecast shows that the company is expected to release Q3 earnings results on Wednesday, November 30, before the start of trading.

The consensus revenue estimate is $995.53M (+12.1% Y/Y), while the consensus EPS estimate is -$0.28 (-3.7% Y/Y).

EPS estimates have seen 1 upward revision and 0 downward revisions in the previous 3 months. There have been 2 downward and 0 upward adjustments to revenue estimates.

The Guangzhou-based EV maker reported second-quarter earnings that fell short of expectations, with margins being squeezed by rising operating costs, particularly those for raw materials and batteries.

Additionally, Xpeng provided a less optimistic outlook for deliveries in the next quarter. A decline in demand that is also affecting other Chinese EV manufacturers is reflected in the lower prediction.

Total deliveries for the third quarter eventually totaled 29,570, a 15% year-over-year decline from the midpoint projection of 29,000 to 31,000.

Xpeng stock forecast shows that the sales and stock performance for the automaker suffered throughout the quarter as a result of worries about the economy’s sharp slowdown and Guangzhou’s COVID regulations.

 

Positive Fundamentals:

Low debt ratio:
The company is more flexible since it is less leveraged than its competitors and is in the top quartile. However, keep an eye on the news and consider the industry. This is occasionally low because there is no room for future expansion at the organization.

Superior growth in revenue:
Compared to its industry, this stock’s revenue growth over the previous five years has been in the top quartile.

 

Negative Fundamentals:

Low market capitalization:
This is one of the less significant companies in its industries with a market capitalization below the average. If it doesn’t have a distinct technology or market that can help it develop or be purchased in the future, it may make it less stable in the long run.

Inadequate risk-adjusted returns:
In comparison to its rivals, this company’s risk-adjusted return performance is below average. The returns are unpredictable, even if it is outperforming in terms of returns. Be careful as you go.

High volatility:
Over the past five years, this company’s total returns have been erratic and higher than the industry average. If you plan to invest in such a stock, be sure your risk tolerance is adequate.

Lower than average dividend returns:
In comparison to its competitors, the company’s average income yield during the past five years has been low. If you are not seeking for work, it is not an issue.

Poor cash flow:
The last four quarters saw a negative total cash flow for the organisation.

Free cash flow that is negative:
In the last four quarters, the company’s overall free cash flow was negative.

Low growth in earnings:
Compared to its sector, this stock’s five-year median earnings growth was lower than average.

 

Conclusion of Analysis:

The fundamental analysis for Xpeng’s stock is rated with an overall score of 2.2 out of 10, which is very Bearish.

 

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