XPeng Inc ADR

XPEV: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$55.20	Dkwfj	Vhxfrqzg

Leading NEV Player With Strong Autonomous Driving Technology; Initiating on XPeng With USD 40 FVE

Vincent Sun

Jul 5, 2022

We initiate coverage on XPeng with a no-moat rating and fair value estimate of USD 40 per ADS (HKD 157 per share). As a leading electric vehicle, or EV, manufacturer in China targeting the mass-market segment, XPeng will benefit from the vehicle electrification trend. Given significant growth opportunities, we forecast a 76.5% 2021-24 revenue CAGR with the first profitable year in 2025. Our fair value implies a forward 2023 price/sales ratio of 3.0 times.

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