- HSBC analyst Yuqian Ding initiated coverage of XPeng Inc (NYSE:XPEV) with a Buy rating and a $37 price target (30% upside).
- Ding specifies that the Chinese company built all its autonomous driving software in-house from the ground up, like Tesla Inc (NASDAQ:TSLA), which no other domestic manufacturer has achieved.
- The analyst calls XPeng's latest autonomous driving system one of the best available in China.
- XPeng's volume growth will be supported by a solid product cycle, the analyst adds.
- XPeng March deliveries shot up by 202% Y/Y to 15,414. The Q1 deliveries climbed 159% Y/Y to 34,561.
- XPeng's EPS loss of $(0.24) beat the consensus loss of $(0.34). XPeng also reported quarterly sales of $1.34 billion, up 207% Y/Y, which topped the consensus of $1.20 billion led by its blockbuster P7 model and newly launched P5 family sedan.
- Price Action: XPEV shares traded higher by 2.9% at $28.39 on the last check Friday.
