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Li Auto initiated with a Neutral at Piper Sandler

Piper Sandler analyst Alexander Potter initiated coverage of Li Auto (LI) with a Neutral rating and $19 price target The firm names Xiaomi its favorite stock among the Chinese electric vehicle specialists. China’s auto market has “cutthroat competition and extreme policy risk,” but some companies have an advantage over their global peers, namely due to electronics self-reliance, the analyst tells investors in an a research note. Piper believes no one is better positioned than Xiaomi. On Li, the firm thinks the company growing outside China is critical, but is “iffy” on its global strategy.

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