Zacks Research Downgrades Li Auto (NASDAQ:LI) to Strong Sell

Key Points

• Li Auto has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating, indicating a negative outlook on the stock.
• Other analysts have mixed views on Li Auto, with BNP Paribas initiating coverage with an "underperform" rating, while Cfra Research recently upgraded it to a "hold."
• The company's share price opened at $23.50, significantly lower than its 12-month high of $33.12, reflecting market volatility and investor concerns.

Li Auto (NASDAQ:LI - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Tuesday, August 19th,Zacks.com reports.

A number of other brokerages also recently commented on LI. BNP Paribas Exane initiated coverage on Li Auto in a report on Monday, August 18th. They set an "underperform" rating and a $18.00 target price for the company. JPMorgan Chase & Co. restated a "neutral" rating and set a $28.00 target price (down previously from $33.00) on shares of Li Auto in a report on Thursday, August 14th. BNP Paribas initiated coverage on Li Auto in a report on Monday, August 18th. They set a "strong sell" rating for the company. Sanford C. Bernstein set a $26.00 target price on Li Auto and gave the company a "market perform" rating in a report on Tuesday, August 19th. Finally, Cfra Research upgraded Li Auto from a "strong sell" rating to a "hold" rating in a report on Tuesday, June 10th. Two equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $27.89.

Li Auto Trading Up 1.5%

LI stock traded up $0.37 during midday trading on Tuesday, hitting $24.37. The company had a trading volume of 4,069,815 shares, compared to its average volume of 5,395,718. The company has a current ratio of 1.87, a quick ratio of 1.72 and a debt-to-equity ratio of 0.12. The stock has a market cap of $25.51 billion, a price-to-earnings ratio of 23.20, a PEG ratio of 1.39 and a beta of 0.94. The stock's 50 day moving average price is $26.77 and its 200 day moving average price is $26.63. Li Auto has a 52 week low of $17.44 and a 52 week high of $33.12.

Li Auto (NASDAQ:LI - Get Free Report) last announced its earnings results on Thursday, May 29th. The company reported $0.08 EPS for the quarter, missing analysts' consensus estimates of $0.09 by ($0.01). The business had revenue of $3.53 billion for the quarter, compared to the consensus estimate of $3.45 billion. Li Auto had a net margin of 5.60% and a return on equity of 11.83%. Li Auto's revenue was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.21 EPS. Li Auto has set its Q2 2025 guidance at EPS. As a group, equities research analysts expect that Li Auto will post 0.96 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Li Auto

A number of institutional investors have recently modified their holdings of LI. Geode Capital Management LLC grew its stake in shares of Li Auto by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 177,767 shares of the company's stock worth $4,265,000 after acquiring an additional 1,560 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in shares of Li Auto in the fourth quarter worth $544,000. First Trust Advisors LP grew its stake in shares of Li Auto by 15.2% in the fourth quarter. First Trust Advisors LP now owns 10,014 shares of the company's stock worth $240,000 after acquiring an additional 1,324 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in shares of Li Auto in the fourth quarter worth $335,000. Finally, Dark Forest Capital Management LP purchased a new stake in shares of Li Auto in the fourth quarter worth $364,000. 9.88% of the stock is owned by hedge funds and other institutional investors.

About Li Auto

Li Auto Inc operates in the energy vehicle market in the People's Republic of China. It designs, develops, manufactures, and sells premium smart electric vehicles. The company's product line comprises MPVs and sport utility vehicles. It offers sales and after sales management, and technology development and corporate management services, as well as purchases manufacturing equipment.