Bank of America Securities lowers sales forecasts for Xpeng-W (09868) for the next two years at 12% and 7%, respectively.
Smart Finance App learned that Bank of America Securities issued a research report stating that it reiterated the 'buy' rating for Xpeng-W (09868), and lowered the target price from HKD 49.5 to HKD 45.6.
The bank expects that Xpeng's sales will benefit from the launch of new models and the release of revised G6 and G9 models in the first half of the year, which will improve from the second half of the year. Xpeng plans to launch its first model in the MONA series, 'MO3', in August, and the P7+ model in the fourth quarter. These two models should help Xpeng's monthly deliveries increase from 0.1 million in June to 0.2 million by the end of this year. The bank pointed out that the company should start receiving technical service income from Volkswagen on the EEA platform in the third quarter.
According to the report, Xpeng's deliveries in the second quarter were 0.03 million vehicles, a year-on-year increase of 30%, slightly lower than the bank's expected 0.031 million vehicles. The bank expects that the gross margin in the second quarter will remain the same as the first quarter due to cost control measures. The bank lowered sales forecasts for the next two years by 12% and 7% respectively, and predicted that the non-GAAP loss from 2024 to 2026 will be 15%, 4%, and 10%.