Li Auto price target lowered to $18 from $19 at Piper Sandler

Piper Sandler lowered the firm’s price target on Li Auto (LI) to $18 from $19 and keeps a Neutral rating on the shares. The firm believes Li Auto faces a difficult transition. In addition to navigating a new policy environment, the company is also launching fully-electric vehicles to complement its portfolio of electric range-extended vehicles. This transition has caused supply chain mixups, lower margins, and falling deliveries, Piper adds. Cash flow has turned negative, exacerbated by ambitious R&D spending, lower payables, and a warranty claim. Investors can look forward to the impact of new products on 2026 deliveries, but due mostly to lower margins, the firm is lowering its price target on the shares.