XPeng shares jump after J.P. Morgan starts coverage at ‘buy’ rating
American depositary shares of China-based electric-car maker XPeng Inc.
XPEV,
jumped more than 5% Tuesday after J.P. Morgan analysts started their coverage of the stock at the equivalent of buy with a price target of $27. “We expect XPeng … to benefit from and lead China’s multi-year smart-EV trend, where we forecast penetration tripling from less than 5% in 2019 toward 13% or higher by 2025,” the analysts led by Nick Lai said in a note made public on Tuesday. Lai said he expects XPeng’s revenue to grow at a “robust” compound annual growth rate of 73% through 2025. The company offers two sedans and two SUVs “at competitive prices” that “can capture a sizable and fast-growing addressable market,” he said. XPeng had its initial public offering in August.
