Li Auto (NASDAQ:LI) stock is on the rise Tuesday following news of new coverage from Jefferies analyst Alexious Lee.
The Jefferies analyst kicked off coverage of Li Auto with a buy rating. That matches up with the consensus rating for LI stock, which comes from six buys, two holds, and no sell ratings.
To go along with the new coverage is a price target of $44.50 per share for LI stock. That’s a bullish stance next to the consensus price target of $34.89 for shares of the stock. It also implies a 36.5% increase for the stock compared to its closing price of $32.60 on Friday.
So why exactly is Lee taking such a strong stance on LI stock. It all comes down to the company’s EREV Powertrain. The analyst notes this has been a success and will allow the company to make a profit ahead of its Chinese electric vehicle (EV) rivals.
That’s not all the positive words the Jefferies analyst had to say about LI stock. He’s also estimating a 100% sales growth in fiscal 2021 and an 86% sales growth in fiscal 2022. Both of these are better than consensus estimates, reports TheFly.com.
LI stock was up 8.8% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
