Positive Outlook for Li Auto: Strategic Adjustments and New Model Cycle Drive Buy Rating

Morgan Stanley analyst Tim Hsiao has maintained their bullish stance on LI stock, giving a Buy rating on June 3.

Tim Hsiao has given his Buy rating due to a combination of factors that suggest a positive outlook for Li Auto. Despite a slow start in June, attributed to increased price competition and regulatory interventions, Hsiao believes these challenges are temporary. The company’s strategic adjustments in its sales channels are expected to impact sales only in the short term, with a recovery anticipated soon.
Hsiao is optimistic about Li Auto’s performance in the latter half of the year, driven by a new model cycle that is expected to boost operations. He highlights the company’s strong execution capabilities and the potential for competitive pricing to surprise the market positively, particularly with the upcoming I8 model. These factors contribute to his confidence in Li Auto’s ability to overcome current hurdles and deliver strong future performance.

According to TipRanks, Hsiao is an analyst with an average return of -4.7% and a 33.33% success rate. Hsiao covers the Consumer Cyclical sector, focusing on stocks such as Nio, BYD Co, and XPeng, Inc. ADR.

In another report released on June 3, Goldman Sachs also maintained a Buy rating on the stock with a $35.30 price target.