0315 GMT - XPeng is likely to reach its breakeven point with positive free cash flow in 4Q25 if the company can maintain its revenue growth momentum into 2Q25, Citi analysts write in a note. In the best-case scenario, XPeng may achieve its sales target of 700,000 units in 2026, they say. XPeng stated that it expects its overall gross profit margin for 1Q25 to improve on quarter, which Citi believes is mainly due to cost declines in 1H and changes in revenue mix. Citi is also cautious that BYD's larger scale economy could pose a challenge to XPeng's market share and pricing strategy over the long term. Citi maintains a buy rating for the stock with a target price of $29.00. The ADRs last closed at $22.64. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
March 18, 2025 23:15 ET (03:15 GMT)
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