On Tuesday, BofA Securities adjusted its price target on shares of Li Auto (NASDAQ:LI), reducing it to $36.00 from the previous $41.00 while maintaining a Buy rating on the stock. The adjustment came after Li Auto reported its first-quarter results for 2024 on May 20.
Li Auto's total revenue for the first quarter reached RMB25.6 billion, marking a 36% increase year-over-year but a 39% decrease from the previous quarter. The gross profit margin (GPM) was slightly better than BofA Securities had anticipated, coming in at 20.6%. This figure represents a marginal year-over-year improvement but a 2.9 percentage point drop compared to the previous quarter.
The operating expenses to sales ratio for Li Auto was reported at 22.9%, which is higher both year-over-year and quarter-over-quarter, indicating reduced operating leverage. The company's operation loss stood at RMB585 million, aligning with forecasts but falling short of broader market expectations.
Despite the mixed financial outcomes, Li Auto's net income in the first quarter of 2024 was RMB593 million. This represents a decline of 36% year-over-year and a sharp 90% fall from the previous quarter. However, the net income did exceed BofA Securities' estimate of RMB111 million, bolstered by higher interest income.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.