Morgan Stanley analyst Tim Hsiao maintained a Buy rating on Li Auto yesterday and set a price target of $32.00.
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Tim Hsiao’s rating is based on several strategic factors that position Li Auto favorably in the market. The company has seen significant demand for its i series vehicles, with over 100,000 orders since the launch of the i8 and i6 models. Despite current battery supply constraints, this strong order book indicates robust consumer interest and potential for future growth.
Furthermore, Li Auto’s strategic focus on expanding its presence in international markets such as the Middle East, Central Asia, and Europe, along with plans to enter right-wheel drive markets, suggests a proactive approach to capturing global market share. Additionally, the company’s commitment to investing in AI, chips, and charging infrastructure, while maintaining manageable R&D growth, underlines a balanced approach to innovation and financial prudence. These factors collectively support the Buy rating given by Tim Hsiao.