On Thursday, Bernstein analysts, led by Eunice Lee, adjusted the price target for Li Auto (NASDAQ:LI) shares, decreasing it to $30.00 from the previous $33.00, while retaining an Outperform rating. The revision reflects a more conservative volume and earnings forecast for the electric vehicle (EV) manufacturer. According to InvestingPro data, Li Auto maintains a GREAT financial health score of 3.31, with the stock currently trading at a P/E ratio of 16.63. InvestingPro analysis suggests the stock is currently undervalued.
Li Auto reported annual deliveries of 501,000 units in 2024, marking a 33% year-over-year growth. Despite a lackluster reception to its MEGA launch in March, the company revamped its sales strategy and introduced the L6 in April. Plans are in place for Li Auto to broaden its market presence in the Middle East and Central Asia. The company's robust performance is reflected in its impressive 42.25% revenue growth over the last twelve months, as reported by InvestingPro. The firm anticipates that the launch of Li Auto's new battery electric vehicle (BEV) model will be a primary driver for future growth, although details on the timing and specifics of the vehicle remain under wraps.
The analyst believes that Li Auto's first BEV is likely to be a full-size or medium-full-size SUV, potentially differentiating it from competitors such as the Tesla (NASDAQ:TSLA) Model Y, Xiaomi (OTC:XIACF) YU7, and NIO's SUV offerings. As of December 31, 2024, Li Auto has constructed over 1,700 super-charging stations to support its fleet.
Investor conversations suggest low expectations for Li Auto's upcoming BEV, which, according to Bernstein, implies that any success in this area could positively impact the current stock price. The company's shares are trading at multiples of 13.8 times projected 2025 earnings and 10.3 times projected 2026 earnings.
InvestingPro analysis reveals the company holds more cash than debt and maintains strong liquidity, with current assets exceeding short-term obligations. Discover 8 more exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription. These valuations are seen as reasonable given Li Auto's growth prospects and profit margins.
The forthcoming BEV launches are viewed as a positive catalyst for Li Auto's stock, which analysts believe is not yet reflected in its market price. The updated price target is based on a forward-looking 14 times 2026 estimated P/E ratio, a decrease from the previously used 20 times 2025 estimated P/E ratio.
In other recent news, Li Auto Inc (NASDAQ:LI)., a prominent Chinese electric vehicle manufacturer, reported a significant increase in its vehicle delivery figures for November. This announcement was part of a Form 6-K filing with the U.S. Securities and Exchange Commission. The Beijing-based firm's robust delivery numbers indicate a continued growth trajectory, particularly noteworthy given its impressive 42% year-on-year revenue growth.
In another development, Lineage, Inc., the world's largest temperature-controlled warehouse REIT, disclosed its third-quarter results for 2024. The company reported a net loss of $543 million, albeit with a slight 0.5% year-over-year increase in revenue to $1.3 billion. Lineage's adjusted EBITDA rose 5.4% to $333 million, and its adjusted funds from operations (AFFO) surged 51.8% to $208 million.
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