Bank of America Lowers Li Auto Price Target to $18
BofA Securities analyst Ming Hsun Lee lowered the price target on Li Auto (NASDAQ: LI) to $18.00 (from $22.00) while maintaining a Neutral rating.
“Management guided 95-100k units of vehicle delivery (down 4.5-10% YoY) in 2Q26.
Guidance on 2Q26 total revenue is RMB24.1-25.4bn, down 16-20% YoY.
Factoring in 1Q26 results and latest guidance, we cut 2026/27E volume sales by 5%/5%, lower 2026/27E GPM by 0.8ppt/0.1ppt, and raise OPEX to sales by 0.8ppt/1.0ppt.
We expect Li Auto to record RMB2.7bn non-GAAP net loss in 2026. We lower our PO to USD18/ADS or HKD70 (from USD22/ADS or HKD86) on lower sales and margins.
We reiterate our Neutral rating given Li Auto’s margin pressure despite sales volume growth.”
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