Li Auto price target raised to $32 from $31 at BofA

BofA raised the firm’s price target on Li Auto (LI) to $32 from $31 and keeps a Buy rating on the shares following quarterly results and an analyst briefing on March 14th. The firm notes that sales came in at RMB 44.3B, up 6% year-over-year and 3% quarter-over-quarter. Overall, GPM was down 3.2 percentage points year-over-year and 1.3ppt quarter-over-quarter at 20.3%, lower than BofA’s forecast of 21.6%. Non-GAAP earnings came in at RMB 4.0B in Q4, down 10% year-over-year, but in-line with the firm’s estimate. BofA also highlights that Li Auto will introduce “AD upgrade edition” of L6/7/8/9 and MEGA in May, and gradually launch new generation of L series starting from 2026. Li Auto plans to launch 2 BEV SUV in 2025, including i8 in July and i6 in the second half of 2025, aiming to boost volume sales in the second half of the year and extend the trend in 2026.