Positive Outlook for Li Auto: Strategic Initiatives and Financial Recovery Drive Buy Rating

In a report released today, Eunice Lee from Bernstein maintained a Buy rating on Li Auto (LI – Research Report), with a price target of $33.00.

Eunice Lee’s rating is based on Li Auto’s positive financial outlook and strategic initiatives. The company’s Q1 2025 results showed a significant improvement in gross and vehicle margins, primarily due to cost reductions, even though revenue and sales volume experienced a slight decline quarter-over-quarter. The operating income and margin also showed a positive trend compared to the previous year, indicating a recovery in financial performance.
Furthermore, Li Auto’s guidance for Q2 2025 suggests a strong recovery in sales volume and revenue, driven by robust demand for their facelifted EREV models and upcoming launches of new BEV models. The company is also expanding its production capacity to meet the high order backlog, which is expected to boost delivery momentum. These factors, combined with strategic product launches and expansion plans, underpin Eunice Lee’s Buy rating for Li Auto.

Lee covers the Consumer Cyclical sector, focusing on stocks such as Geely Automobile Holdings, Nio, and BYD Co. According to TipRanks, Lee has an average return of 19.2% and a 69.09% success rate on recommended stocks.

In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $32.10 price target.