Goldman Sachs Upgrades Xpeng (XPEV) to ‘Buy’ and Hikes Price Target to $24

XPeng Inc. (NYSE:XPEV) is one of Goldman Sachs’ top Chinese stock picks. On June 17, Goldman Sachs upgraded the stock to a ‘Buy’ from a ‘Neutral.’ It also hiked the price target from $18.60 to $24. The upgrade is in response to significant strategic improvements at the Chinese electric vehicle manufacturer.

Goldman Sachs Upgrades Xpeng (XPEV) to ‘Buy’ and Hikes Price Target to $24

A fleet of electric light vehicles recharging their batteries in a parking lot.

According to the research firm Xpeng, it has conducted significant organizational restructuring, supply chain optimization, and cost reductions. The investment bank is also impressed by the company stepping up model launches.

Goldman Sachs expects the strategic improvements to transform Xpeng’s product cost structure and strengthen its competitive edge in the electric vehicle market. The investment bank also projects sustainable sales volume growth due to the improvements. The remarks come as XPeng strengthens its position in the Chinese electric vehicle market. Using platform improvement initiatives, it’s maintaining its position against domestic and international rivals.

XPeng Inc. (NYSE:XPEV) is a Chinese company that designs, develops, manufactures, and markets Smart Electric Vehicles (Smart EVs). It integrates advanced technologies like internet connectivity, AI, and driver-assistance systems into vehicles.

While we acknowledge the potential of XPEV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.