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Buy Li Auto 'MEGA Dip,' Analyst Says: EV Maker Anticipates 3,000 Unit Deliveries A Month

Published 07/03/2024, 18:00
Updated 07/03/2024, 19:10
© Reuters.  Buy Li Auto 'MEGA Dip,' Analyst Says: EV Maker Anticipates 3,000 Unit Deliveries A Month
LI
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Benzinga - by Priya Nigam, Benzinga Staff Writer.

Shares of Li Auto Inc (NASDAQ: LI) tanked in premarket trading on Thursday amid reports of electric vehicle (EV) deliveries continuing to decline in China.

The recent pullback in the company’s stock was likely triggered by the order intake for MEGA, its high-tech flagship family MPV, being weaker than Street estimates, according to Bernstein.

The Li Auto Analyst: Eunice Lee maintained an Outperform rating and price target of $52.50 for Li Auto.

The Li Auto Thesis: The stock had rallied around 30% after the company reported strong fourth-quarter earnings and issued a bullish guidance for 2024, Lee said in a note.

Check out other analyst stock ratings.

However, the stock has lost around 20% since Friday, which presents an “attractive buying opportunity,” the analyst stated.

“The company hasn’t disclosed order book for MEGA (yet), but market chatters are pointing to only c.4k non-refundable orders to date, i.e., over five days since launch, which seems weak,” Lee wrote. “Management had guided to monthly deliveries of at least 5k, and some in the supply chain have pointed to c.8k+ internal target,” he added.

The analyst further said that monthly deliveries could be "around 2-3k units."

LI Price Action: Shares of Li Auto declined by 4.3% to $36.24 at last check on Thursday.

Photo courtesy of Li Auto

Latest Ratings for LI

DateFirmActionFromTo
Feb 2022BarclaysMaintainsOverweight
Feb 2022BarclaysInitiates Coverage OnOverweight
Jan 2022MacquarieInitiates Coverage OnOutperform
View More Analyst Ratings for LI

View the Latest Analyst Ratings

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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