Bernstein Lowers Li Auto Price Target to $14.50
Bernstein SocGen Group analyst Eunice Lee lowered the price target on Li Auto (NASDAQ: LI) to $14.50 (from $15.50) while maintaining a Market Perform rating.
“Competition and cannibalization headwinds limit earnings visibility.
The company guided for Q3 26 deliveries of 95-100k units (+2-7% yoy), implying August-September deliveries of 32-35k units per month vs. 30.5k in July, indicating modest sequential improvement.
We expect gross margin to remain under pressure from insufficient scale and elevated BOM costs, although management targets a recovery to above 15% in Q4 26.
That said, the outlook remains highly dependent on competitors’ pricing actions, particularly Xiaomi and BMW.
The company plans to launch a refresh of MEGA (c.RMB 500k) and a new i9 (c. RMB 400k) in September.
Given that both are premium family-oriented BEVs, alongside the L9 EREV targeting a similar customer base, we see a risk of product overlap and potential cannibalization.”
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