Li Auto (LI) Earnings Boosted by 47% Increase in June Vehicle Deliveries

Li Auto on Smartkarma

On Smartkarma, independent analysts Eric Wen and Ming Lu have provided insightful coverage of Li Auto. Wen’s bullish sentiment highlights Li Auto’s delayed BEV launch to 2025 in a competitive Chinese EV market, maintaining a buy rating due to its SUV niche, healthy margin, and ample cash. However, the target price has been adjusted from US$40 to US$25. On the other hand, Ming Lu‘s bearish view focuses on negative developments like operating profit turning negative, disappearance from the top-10 sales list, and slowing revenue growth to zero in April, suggesting a sell rating for the stock.

Additionally, Wen’s bullish perspective in another report emphasizes Li Auto’s strong performance in top-line, operating profit, and net income, with potential for increased exports. The report mentions possible challenges in gross margins if the sedan volume target is achieved, highlighting the complexities of the market. Meanwhile, Ming Lu‘s positive take on Li Auto’s high growth and profit in 4Q23 led to an upgrade to hold, citing a 136% revenue growth and outperforming operating profit compared to market consensus, positioning Li Auto as a winner in the market concentration shift.

A look at Li Auto Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Li Auto, a manufacturer of smart new energy electric SUVs in China, seems to have a promising long-term outlook based on its Smartkarma Smart Scores. With a high Growth and Resilience score of 5, the company demonstrates strong potential for expansion and the ability to weather market challenges. This indicates that Li Auto is well-positioned to capitalize on opportunities in the electric vehicle sector and maintain its operations efficiently.

While the Value score is moderate at 3, and the Dividend and Momentum scores are lower at 1 and 2 respectively, the overall positive assessment of Growth and Resilience suggests that Li Auto is a company with robust prospects for future development and sustainability in the competitive automotive industry. Investors may find Li Auto an appealing choice for long-term investment due to its high growth potential and resilience in the face of market fluctuations.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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