Chinese EV maker Xpeng set to extend 50 per cent share-price surge thanks to new SUV, overseas expansion: Goldman Sachs

The US investment bank set a share-price target of HK$70, implying a 17.4 per cent gain from Xpeng’s Wednesday close

Shares of Xpeng will be underpinned by its competitive new G6 model and a resilient outlook for overseas growth, analyst says

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Xpeng’s G6 sport-utility vehicle starts at 225,000 yuan (US$31,471). Photo: Xpeng Weibo

Zhang Shidongin ShanghaiandDaniel Renin Shanghai

Published: 6:30pm, 12 Jul 2023

Chinese electric-vehicle maker Xpeng is set to extend its more than 50 per cent stock gain this year, according to Goldman Sachs, which bets the stock still has room to run thanks to a well-received new sport-utility vehicle (SUV) and a stronger footing in its overseas business.

The US investment bank set a price target of HK$70 for the Guangzhou-based electric car company and rated the stock “buy” in relaunched coverage of Chinese carmakers by its analyst Tina Hou. That implies a 17.4 per cent gain from Xpeng’s close of HK$59.60 on Wednesday.

Shares of Xpeng will be underpinned by its competitive new G6 model and a resilient outlook for its overseas growth, Hou said in a report.

“Strong sales of Xpeng’s G6 heightened hopes for a big improvement in its performance,” said Gao Shen, an independent analyst in Shanghai. “Xpeng’s new architecture and autonomous driving technology proved to be well received by Chinese motorists, which bodes well for its models in the pipeline.”

A woman walks past a showroom of Chinese electric vehicle (EV) maker Xpeng in Beijing on February 4, 2023. Photo: Reuters

Xpeng received 35,000 orders for the G6 sport-utility vehicle since it began presales on June 9, and president Brian Gu told reporters in a media briefing last week that the carmaker expected to be delivering 10,000 G6s a month later this year.