Freedom Capital Markets Lowers Li Auto Price Target to $25
Freedom Capital Markets analyst Roman Lukianchikov lowered the price target on Li Auto (NASDAQ: LI) to $25.00 (from $34.00) while maintaining a Buy rating.
“The company reported mixed quarterly results and issued a poor forecast for the next quarter.
Chinese EV manufacturers are involved in an aggressive price war in an attempt to offset weakening domestic demand, which is putting significant pressure on sales of Li Auto as it seeks to achieve a balance between lowering prices of its products and optimizing costs.
The factors that will determine the company’s performance in the coming quarters will be its technological innovations that can reduce the cost of vehicles and increase their attractiveness in the eyes of customers, as well as its planned expansion into foreign markets.
We assign a “Buy” rating and lower the target price of LI shares from $34 to $25.”
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