Li Auto (NASDAQ:LI) Shares Gap Down After Analyst Downgrade

Key Points

• Shares of Li Auto gapped down after Goldman Sachs downgraded the stock from Buy to Neutral, opening at $17.08 versus a prior close of $17.97 and last trading around $17.21 on heavy volume.
• Analyst sentiment has shifted lower—Li Auto's average rating is now Reduce with an average price target of $18.55, after multiple firms cut targets (Goldman $19, Jefferies $17.50, Barclays $18).
• The stock is down about 4.3%, trading below its 200‑day moving average ($19.68), with a high trailing P/E (~132) and a market cap near $18.0 billion, reflecting recent weakness despite elevated valuation.

Shares of Li Auto Inc. Sponsored ADR (NASDAQ:LI - Get Free Report) gapped down before the market opened on Wednesday after The Goldman Sachs Group downgraded the stock from a buy rating to a neutral rating. The stock had previously closed at $17.97, but opened at $17.08. The Goldman Sachs Group now has a $19.00 price target on the stock. Li Auto shares last traded at $17.2050, with a volume of 830,866 shares traded.

Several other research firms have also recently commented on LI. Jefferies Financial Group reiterated a "hold" rating and set a $17.50 price target (down from $28.80) on shares of Li Auto in a report on Friday, January 23rd. Barclays reduced their price objective on shares of Li Auto from $24.00 to $18.00 and set an "equal weight" rating on the stock in a report on Monday, December 1st. Piper Sandler raised shares of Li Auto from a "neutral" rating to an "outperform" rating in a research report on Friday. Weiss Ratings reiterated a "sell (d+)" rating on shares of Li Auto in a research note on Monday, December 29th. Finally, Sanford C. Bernstein set a $19.00 target price on Li Auto and gave the company a "market perform" rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $18.55.

Hedge Funds Weigh In On Li Auto

A number of hedge funds have recently modified their holdings of LI. Elevation Point Wealth Partners LLC acquired a new position in shares of Li Auto in the 2nd quarter valued at $27,000. MAI Capital Management boosted its stake in Li Auto by 2,236.0% during the 2nd quarter. MAI Capital Management now owns 1,168 shares of the company's stock worth $32,000 after purchasing an additional 1,118 shares during the period. Farther Finance Advisors LLC grew its position in Li Auto by 312.3% during the 4th quarter. Farther Finance Advisors LLC now owns 1,674 shares of the company's stock worth $28,000 after purchasing an additional 1,268 shares during the last quarter. Mizuho Securities Co. Ltd. acquired a new position in Li Auto in the second quarter valued at $107,000. Finally, DV Equities LLC acquired a new position in Li Auto in the fourth quarter valued at $72,000. 9.88% of the stock is currently owned by hedge funds and other institutional investors.

Li Auto Stock Down 4.3%

The business's fifty day moving average price is $17.49 and its 200 day moving average price is $19.68. The company has a quick ratio of 1.68, a current ratio of 1.81 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $18.01 billion, a PE ratio of 132.21 and a beta of 0.60.

About Li Auto

Li Auto Inc is a Chinese automotive company that develops, manufactures and sells smart electric vehicles, with an early focus on range-extended electric SUVs designed for family use. The company is headquartered in China and serves the domestic market through a combination of online channels and a network of retail/showroom locations. Li Auto was founded to address range-anxiety in electric vehicle buyers by integrating a small internal-combustion engine as a range extender alongside a large battery, enabling longer driving range while retaining electric driving characteristics.

The company's product lineup centers on multi‑occupant SUVs that combine electric propulsion, advanced in‑vehicle connectivity and driver‑assistance features.

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