Analyst Expectations For Li Auto's Future

Across the recent three months, 4 analysts have shared their insights on Li Auto LI, expressing a variety of opinions spanning from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $57.75, a high estimate of $74.00, and a low estimate of $41.00. Observing a 7.44% increase, the current average has risen from the previous average price target of $53.75.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Li Auto among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Li Auto. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Li Auto compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Li Auto's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Li Auto's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Li Auto analyst ratings.

Discovering Li Auto: A Closer Look

Li Auto is a leading Chinese NEV manufacturer that designs, develops, manufactures, and sells premium smart NEVs. The company started volume production of its first model Li One in November 2019. The model is a six-seater, large, premium plug-in electric SUV equipped with a range extension system and advanced smart vehicle solutions. It sold over 376,000 NEVs in 2023, accounting for about 4% of China's passenger new energy vehicle market. Beyond Li One, the company expands its product line, including both BEVs and PHEVs, to target a broader consumer base.

Li Auto: Delving into Financials

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Li Auto's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 20.34%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Li Auto's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 13.56%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Li Auto's ROE stands out, surpassing industry averages. With an impressive ROE of 9.95%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Li Auto's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.29% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Li Auto's debt-to-equity ratio is below the industry average. With a ratio of 0.23, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.