XPeng stock price positions for $25 move before earnings

by Girls Rock Investing

XPeng stock price has rebounded in the past few days, with its US ADR rising from $15.35 on March 3 to the current $20.

This recovery will be put to the test this week when it publishes its financial results later this week.

XPeng to publish its financial results this week 

XPeng, a top Chinese company, will be in the spotlight this week as it releases its financial results in February.

These results come at a time when the company’s business is facing some major headwinds and tailwinds.

Data shows that its deliveries continued rising last year, moving from 94,000 in the first quarter to 116,249 in the fourth quarter.

The fourth quarter deliveries were much lower than its previous guidance of between 125,000 and 132,000. Its full-year deliveries jumped by 126% YoY to over 429,000.

The most recent data showed that the company delivered 15,256 vehicles in February, a growth trajectory that will continue as the company boosts its international sales.

It has already started delivering the new XPENG P7+ vehicle internationally in 18 countries.

XPeng also recently launched the second generation of the Vision Language Action (VLA) solution, which is designed to boost its autonomous capabilities. 

The average estimate of 8 analysts tracked by Yahoo Finance is that the its revenue will come out at CNY 22 billion, up by 36% YoY.

This report will bring its annual revenue to CNY 76.78 billion, up by 88% YoY.

Analysts also expect that the 2026 revenue will continue rising to CNY 103 billion, up by 35% from its 2025 figure.

Most importantly, the company is moving towards profitability.

The average estimate is that its earnings per share this year will be a loss of CNY 1.15 from the CNY 5.87 it made in 2025.

It will then make an earnings-per-share of CNY 1.74.

XPeng has been working on its profitability in the past few years.

The most recent results showed that its vehicle gross profit margin rose to 13.1% in the third quarter from 8.6% in the same period in 2024.

Analysts have a fairly optimistic outlook about XPeng as the Iran war boosts oil prices, pushing more people to buy more electric vehicles.

It will also benefit from the ongoing international expansion, especially in Europe, South America, and Canada.

In a recent note, analysts at Freedom Capital Markets upgraded the stock from hold to buy, with the price target rising from $20 to $25.

Macquarie analysts also boosted the stock rating from neutral to outperform.

XPeng stock price technical analysis 

XPEV stock chart | Source: TradingView 

The daily chart shows that the XPEV stock price bottomed at $15.34 on March 3, when it formed a dragonfly doji candlestick pattern. 

This pattern is made up of a long lower shadow, a tiny body, and is one of the most common bullish reversal signs in technical analysis.

The stock has rebounded above the 50-day Exponential Moving Average (EMA) and the Ultimate Support of the Murrey Math Lines tool at $18.75.

Therefore, the stock will likely continue rising as bulls target the key resistance level at $21.88, the Strong, Pivot, and Reverse level of the Murrey Math Lines.

A move above that level will point to more gains to the Major S/R Pivot Point of $25.

The post XPeng stock price positions for $25 move before earnings appeared first on Invezz

You may also like