LI Stock Recent News

For the second time in a week, Citigroup analyst Jeff Chung raised his price target on Li Auto stock. In total, Citi now thinks the stock is worth 37% more than it was a week ago, despite there being little news driving the rally.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

The numerous government stimulus has already triggered improved sentiments surrounding Chinese ADRs, significantly aided by the raised EV subsidies. These have contributed to LI's robust YTD deliveries, along with the promising FQ3'24 guidance. Thanks to the completion of its production capacity ramp up and cost efficiency strategies, we may see H2'24 bring forth improved bottom-lines as well.

Yesterday, the People's Bank of China (PBOC) announced a broad set of stimulus measures including lower mortgage rates, lower reserve requirements for banks, capital injections, and lower interest rates. Today, the PBOC lowered the rate on a medium-term lending facility for banks.

Li Auto (NYSE: LI) stock price has staged a strong recovery in the past few days, joining other Chinese EV companies like Xpeng and Nio. It has risen in the last three consecutive days, reaching a high of $24.75, its highest point since May 13, and 41% above the current level.

The People's Bank of China has announced a series of stimulus measures to boost GDP growth in 2024. Reuters calls the measures, which include interest rate cuts and new financing for stock buybacks, China's "biggest stimulus since the pandemic.

Nio may finally be hitting its stride. Li Auto stands out from its peers with its recent growth in profitability.

The U.S. is bracing for rate cuts, and so is China. Chinese E.V. makers like Li Auto (LI) rallied off the expectations of cuts from the People's Bank of China. Kevin Green looks into how it aligns with American markets and for metals like palladium.

Global sales of electric and plug-in hybrid vehicles

Li Auto reported strong Q2 earnings with 11% Y/Y revenue growth and a 26% increase in delivery volume. Li Auto maintains the highest vehicle margins among Chinese EV start-ups, with Q2 vehicle margins of 18.7%, significantly outperforming NIO and XPeng. Li Auto's valuation remains low despite its profitability, highest margins, and robust delivery outlook, suggesting significant revaluation potential.