XPeng (NASDAQ:XPEV) is one of the biggest electric vehicle stocks around. At least, it is in China. But it’s also having a lot more trouble these days than it did not so long ago. A disappointing first-quarter earnings report emerged, and not long after that, Barclays turned on XPeng, lowering ratings and price targets along with it.
Barclays analyst Jiong Shao dropped the boom on XPeng, lowering the rating from Hold to Sell. Shao also lowered the price target from $8 a share to just $6. One of the biggest reasons was, again, that first-quarter earnings report that brought so much disappointment in its wake. Worse, the guidance for the second quarter wasn’t particularly encouraging either. Shao also expressed doubt that the new models coming up in the next couple of months will deliver sufficient impact to perk up XPeng’s sales and, from there, its bottom line.
The earnings report was, indeed, a disaster. XPeng missed on both main fronts. It not only had a loss, but a worse loss than expected, coming in at -$0.37 when analysts expected -$0.34. Revenue also faltered, missing analyst expectations by over $125 million but also coming in 45.9% lower than the same time last year. The biggest problem for XPeng traced back to demand. Or rather, an incredible lack thereof. XPeng is, essentially, not growing anymore, and for something that was regarded as a growth stock not so long ago, that’s a deeply disturbing sign.
Meanwhile, most analysts are split on XPeng’s overall future. With two Buy ratings, three Holds, and two Sells, XPeng stock is currently considered a Hold by analyst consensus. With an average price target of $10.10, however, it comes with an upside potential of 26.96%.
