Li Auto: Hold Rating Amid Growth Prospects and Profitability Concerns

Analyst Jeff Chung of Citi maintained a Hold rating on Li Auto (LI – Research Report), retaining the price target of $34.30.

Jeff Chung has given his Hold rating due to a combination of factors that reflect both the potential and challenges faced by Li Auto. The company’s guidance for the second quarter of 2025 indicates a positive trajectory with expected delivery and revenue growth. However, the anticipated vehicle margin is slightly lower compared to the previous quarter, which may raise concerns about profitability.
Furthermore, Li Auto is actively expanding its product lineup and infrastructure, including the launch of new models and an increase in supercharging stations. While these developments are promising, the company faces the challenge of maintaining its market share in a competitive environment. Additionally, the ambitious growth targets set by management require careful execution to achieve the desired outcomes. These mixed signals contribute to the Hold rating, suggesting that investors should wait for more clarity on the company’s ability to meet its objectives.

LI’s price has also changed moderately for the past six months – from $23.680 to $28.490, which is a 20.31% increase.