XPeng Inc. (NYSE:XPEV) Released Earnings Last Week And Analysts Lifted Their Price Target To US$22.04

Last week, you might have seen that XPeng Inc. (NYSE:XPEV) released its full-year result to the market. The early response was not positive, with shares down 3.8% to US$23.80 in the past week. The results look positive overall; while revenues of CN¥41b were in line with analyst predictions, statutory losses were 3.3% smaller than expected, with XPeng losing CN¥6.12 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for XPeng

Taking into account the latest results, the most recent consensus for XPeng from 34 analysts is for revenues of CN¥78.0b in 2025. If met, it would imply a major 91% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 45% to CN¥3.36. Yet prior to the latest earnings, the analysts had been forecasting revenues of CN¥74.4b and losses of CN¥4.02 per share in 2025. So it seems there's been a definite increase in optimism about XPeng's future following the latest consensus numbers, with a cut to the loss per share forecasts in particular.

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It will come as no surprise to learn thatthe analysts have increased their price target for XPeng 35% to US$22.04on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on XPeng, with the most bullish analyst valuing it at US$32.03 and the most bearish at US$7.01 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the XPeng's past performance and to peers in the same industry. The analysts are definitely expecting XPeng's growth to accelerate, with the forecast 91% annualised growth to the end of 2025 ranking favourably alongside historical growth of 38% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect XPeng to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for XPeng going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for XPeng that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.