On Wednesday, Jefferies adjusted its financial outlook for XPeng Inc. (NYSE:XPEV), reducing the electric vehicle maker's stock price target to $18.60 from the previous $25.30, while sustaining a Buy rating on the stock. The adjustment followed XPeng's fourth-quarter earnings report, which indicated a significant year-over-year revenue increase and a quarterly reduction in net loss.
XPeng's fourth-quarter results showed a remarkable 153.9% rise in revenue year-over-year and a 53% increase quarter-over-quarter, reaching RMB 13.1 billion. Moreover, the company's net loss decreased by RMB 2.5 billion from the previous quarter, totaling RMB 1.3 billion. Notably, the vehicle margin for the quarter stood at 4.2%, which was 2 percentage points higher than Jefferies' estimates.
The company's first-quarter delivery guidance for 2024, projecting 21,000 to 22,500 units, aligned with Jefferies' expectations. The revenue guidance for the same period, ranging from RMB 5.8 billion to RMB 6.2 billion, suggests an optimistic outlook for XPeng's product mix moving forward.
The analyst from Jefferies shared insights from the analyst call that took place after the earnings results were made public. The discussion provided additional context for the financial figures and the company's future prospects. XPeng's latest financial performance and future guidance appear to reinforce Jefferies' positive stance on the stock, despite the revised price target.
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