BofA Securities has issued a research report raising the target price for XPENG-W (09868, XPEV.US) to $27 from $26 for its U.S. shares, while lifting the Hong Kong stock target price from HK$101 to HK$105. The firm reiterated its "Buy" rating, citing the company's robust vehicle launch plans for the second half of 2025 through 2026.

At the 2025 XPENG Tech Day, the company unveiled four key applications centered on "Physical AI," including the second-generation VLA model, XPENG Robotaxi, a new-generation IRON humanoid robot, and the HT Aero flying car. BofA Securities highlighted that the integration of digital and physical worlds has given rise to Physical AI, enabling machines to comprehend, interact with, and transform the real world. XPENG aims to position itself as a mobility explorer in the Physical AI era, with all new product developments rooted in this concept.

Based on updated sales projections, BofA Securities has raised its 2025–2027 delivery estimates for XPENG by 0.2%, 0.2%, and 0.3%, respectively. Consequently, the firm also adjusted its revenue forecasts upward by the same margins for these years. However, due to product mix changes, BofA slightly trimmed its gross margin expectations.

Overall, BofA Securities anticipates XPENG's 2025 non-GAAP net loss to widen by 37%, while lowering its 2026 and 2027 non-GAAP net profit forecasts by 4% and 6%, respectively.