Goldman Sachs analyst Tina Hou has maintained their bullish stance on LI stock, giving a Buy rating on May 16.
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Tina Hou has given her Buy rating due to a combination of factors including Li Auto’s strong financial performance and strategic positioning. The company reported a significant beat on GAAP net profit compared to both Goldman Sachs estimates and Visible Alpha Consensus, primarily driven by higher vehicle sales. This was attributed to increased sales volume and a higher average selling price, which also contributed to a better-than-expected vehicle gross margin.
Moreover, Li Auto demonstrated effective cost management with lower-than-expected SG&A expenses, even as R&D expenses rose due to investments in new vehicle models and AI technologies. The company’s guidance for the second quarter aligns closely with expectations, and its robust balance sheet, characterized by a substantial net cash position, further supports the Buy rating. These factors, combined with strategic initiatives in market competition, pricing strategies, and technological advancements, underpin the positive outlook for Li Auto.
In another report released on May 16, J.P. Morgan also maintained a Buy rating on the stock with a $33.00 price target.