Shares of XPeng (NYSE:XPEV) plunged 13% at the time of writing following a downgrade from UBS, who shifted their rating from ‘Buy’ to ‘Neutral.’ UBS appears to believe that the anticipated benefits from the Volkswagen partnership and G6 momentum have already been baked into XPeng’s current share price.
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UBS analyst Paul Gong threw a note of caution into the mix. He suggested that despite the planned collaboration with Volkswagen over the next three years, XPeng isn’t out of the woods. The company remains exposed in a dog-eat-dog market and faces the challenge of clawing back its profitability. UBS has pinned a price target of $23 on XPeng, factoring in a 2.5X 2024 price-to-sales multiple.
What is XPeng’s Price Target?
Overall, analysts have a Hold consensus rating on XPeng stock based on six Buys, five Holds, and three Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $14.56 per share implies 27.72% downside risk.