Li Auto (LI) Earnings Fall Short: 1Q Vehicle Delivery Estimates Missed and Forecast Slashed

Li Auto on Smartkarma

Analysts on Smartkarma have been closely following the coverage of Li Auto, a Chinese electric vehicle company. In a recent report, Eric Wen, a top independent analyst, highlights the potential for increased exports for Li Auto, but also warns of possible challenges with gross margins if the company meets its sedan volume target. Wen raises his target price for Li Auto and reiterates a “buy” rating.

Another analyst, Ming Lu, also sees potential for growth in Li Auto, with the company reporting strong fourth quarter results and being one of the top-performing NEV sellers in China. Lu upgrades the stock to a “hold” rating, believing it will be a winner as the market becomes more concentrated. However, in a separate report, Lu also cautions that the stock may be overvalued when compared to other companies besides Tesla.

In a broader update on the transportation sector, Wen discusses how Huawei’s recent investments in its Intelligent Automotive Solution could actually strengthen its Harmony Intelligent Mobility Alliance, potentially impacting Li Auto and other Chinese EV companies like Nio and XPeng. Meanwhile, Lu’s weekly China Consumption report notes Li Auto’s impressive revenue and vehicle delivery growth in the third quarter, as well as news that Nio will be laying off employees and Alibaba may not fully acquire Best Inc.

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 leading Chinese automobile manufacturer, has received high scores in Growth, Resilience, and Momentum on the Smartkarma Smart Scores. This indicates a positive long-term outlook for the company. With a score of 5 in Growth, Li Auto is expected to see significant expansion and success in the future. The company has also shown resilience with a score of 5, indicating its ability to withstand challenges and continue to grow. Additionally, Li Auto has a score of 5 in Momentum, reflecting its strong momentum in the market and potential for continued growth.

While the company received a lower score of 2 in Value and a score of 1 in Dividend, these factors may not be as critical in determining the long-term outlook for Li Auto. Overall, based on the Smartkarma Smart Scores, it can be concluded that Li Auto is well-positioned for long-term success and growth in the Chinese market. With its focus on smart new energy electric sport utility vehicles, Li Auto is poised to make a significant impact in the automobile industry in China.

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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