Jeff Chung, an analyst from Citi, maintained the Hold rating on Li Auto. The associated price target was lowered to $33.90.
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Jeff Chung’s rating is based on a combination of factors that influence the outlook for Li Auto. The pricing for the i8 model was set slightly higher than anticipated, which could impact its market reception, although the mature monthly sales rate is expected to stabilize at around 6,000 units. The i8 Max version is highlighted as offering good value due to its advanced features, including VLA and Thor-U chips. Additionally, Li Auto is providing a discount for existing customers, which could help drive sales.
For the upcoming i6 model, Jeff anticipates a pricing strategy that might involve reducing features to maintain competitiveness, potentially leading to a monthly demand of approximately 10,000 units. The L6 model is expected to maintain a steady sales rate, targeting a different customer segment in tier-2 cities. These considerations contribute to the Hold rating, as they suggest a balanced outlook without immediate catalysts for a significant stock price increase.
LI’s price has also changed moderately for the past six months – from $23.130 to $27.380, which is a 18.37% increase.