Sanford C. Bernstein Downgrades Li Auto (NASDAQ:LI) to Market Perform

Key Points

• Li Auto has been downgraded from an "outperform" to a "hold" rating by Sanford C. Bernstein, which also reduced its price target from $33.00 to $26.00.
• The stock is currently rated with an average of two buy ratings, seven hold ratings, and two sell ratings, with a consensus price target of $28.64.
• In the most recent quarter, Li Auto reported a net margin of 5.60% and earnings per share of $0.08, missing analysts' expectations.

Sanford C. Bernstein cut shares of Li Auto (NASDAQ:LI - Free Report) from an outperform rating to a market perform rating in a report issued on Tuesday, Marketbeat reports. They currently have $26.00 target price on the stock, down from their previous target price of $33.00.

A number of other research firms have also commented on LI. BNP Paribas Exane assumed coverage on shares of Li Auto in a research note on Monday, August 18th. They issued an "underperform" rating and a $18.00 price objective for the company. Cfra Research raised shares of Li Auto from a "strong sell" rating to a "hold" rating in a research note on Tuesday, June 10th. JPMorgan Chase & Co. reissued a "neutral" rating and set a $28.00 target price (down previously from $33.00) on shares of Li Auto in a research note on Thursday, August 14th. Finally, BNP Paribas began coverage on shares of Li Auto in a report on Monday, August 18th. They set a "strong sell" rating on the stock. Two investment analysts have rated the stock with a Buy rating, six have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, Li Auto presently has an average rating of "Reduce" and a consensus price target of $27.89.

Li Auto Price Performance

Li Auto stock traded up $0.0950 during mid-day trading on Tuesday, hitting $24.1550. The company's stock had a trading volume of 2,913,893 shares, compared to its average volume of 5,390,288. The company has a quick ratio of 1.72, a current ratio of 1.87 and a debt-to-equity ratio of 0.12. The stock has a market capitalization of $25.29 billion, a P/E ratio of 23.00, a P/E/G ratio of 1.39 and a beta of 0.94. Li Auto has a twelve month low of $17.44 and a twelve month high of $33.12. The stock's fifty day moving average price is $26.85 and its two-hundred day moving average price is $26.64.

Li Auto (NASDAQ:LI - Get Free Report) last posted its quarterly earnings data on Thursday, May 29th. The company reported $0.08 EPS for the quarter, missing analysts' consensus estimates of $0.09 by ($0.01). Li Auto had a return on equity of 11.83% and a net margin of 5.60%.The firm had revenue of $3.53 billion during the quarter, compared to analyst estimates of $3.45 billion. During the same period in the prior year, the business posted $1.21 EPS. The company's revenue for the quarter was up 1.1% on a year-over-year basis. Li Auto has set its Q2 2025 guidance at EPS. Research analysts forecast that Li Auto will post 0.96 earnings per share for the current year.

Institutional Investors Weigh In On Li Auto

Several institutional investors and hedge funds have recently modified their holdings of the business. PNC Financial Services Group Inc. lifted its stake in shares of Li Auto by 9.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 6,134 shares of the company's stock valued at $155,000 after purchasing an additional 538 shares during the last quarter. Laird Norton Wetherby Wealth Management LLC lifted its stake in shares of Li Auto by 2.2% in the 4th quarter. Laird Norton Wetherby Wealth Management LLC now owns 25,174 shares of the company's stock valued at $604,000 after purchasing an additional 547 shares during the last quarter. US Bancorp DE lifted its stake in shares of Li Auto by 9.0% in the 1st quarter. US Bancorp DE now owns 10,255 shares of the company's stock valued at $258,000 after purchasing an additional 844 shares during the last quarter. Tidal Investments LLC lifted its stake in shares of Li Auto by 1.0% in the 2nd quarter. Tidal Investments LLC now owns 88,772 shares of the company's stock valued at $2,407,000 after purchasing an additional 856 shares during the last quarter. Finally, Corient Private Wealth LLC lifted its stake in shares of Li Auto by 8.6% in the 2nd quarter. Corient Private Wealth LLC now owns 11,955 shares of the company's stock valued at $324,000 after purchasing an additional 951 shares during the last quarter. Institutional investors and hedge funds own 9.88% of the company's stock.

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.