Citi lowers XPeng's target price to 107.8 yuan and also reduces earnings forecasts, incorporating valuation for the robotics business

Citi lowered the target price for XPeng to HKD 107.8 and adjusted its profit forecast, expecting a 5% reduction in revenue for 2025 and a 12% increase in net loss to RMB 1.501 billion. It is anticipated that vehicle sales in 2026 will be adjusted down to 500,000 units, with a gross margin dropping to 14.9%. At the same time, Citi has included the robotics business in its valuation, expecting revenue contributions of RMB 1.2 billion and RMB 3.6 billion for 2026 and 2027, respectively. The total revenue forecast has been lowered by 8% to 15%