Buy Li Auto 'MEGA Dip,' Analyst Says: EV Maker Anticipates 3,000 Unit Deliveries A Month
Portfolio Pulse from Priya Nigam
Li Auto Inc (NASDAQ:LI) shares dropped in premarket trading due to reports of declining EV deliveries in China. Bernstein analyst Eunice Lee maintains an Outperform rating with a $52.50 price target, viewing the recent 20% stock decline as a buying opportunity. The decline was attributed to weaker than expected order intake for MEGA, Li Auto's flagship MPV. Despite bullish guidance for 2024 and strong Q4 earnings, market chatter suggests only about 4k non-refundable orders for MEGA, against management's guidance of 5k monthly deliveries and an internal target of over 8k.
March 07, 2024 | 6:00 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Li Auto's stock experienced a premarket drop due to disappointing EV delivery reports in China and weaker than expected orders for its MEGA MPV. Despite this, Bernstein analyst Eunice Lee maintains an Outperform rating and a $52.50 price target, suggesting the current price level represents a good buying opportunity.
The stock's recent decline is seen as temporary by Bernstein, attributed to short-term challenges with the MEGA MPV's order intake. The analyst's continued support and bullish price target suggest confidence in Li Auto's recovery and growth prospects, potentially leading to a positive short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100