Today, shares of Li Auto (NASDAQ:LI) are trading higher by 9%. The Chinese electric vehicle (EV) manufacturer recently had its price target upgraded by Morgan Stanley from $39 to $49. This price target followed the news that Li Auto had more than doubled its October delivery numbers when compared to a year ago.
Li Auto reported delivering 7,649 vehicles in October, compared to 7,094 in September. The high-end automaker currently only has one vehicle available for sale, the Li ONE, which was one of China’s best selling cars in 2020. Li Auto President Yanan Shen stated in a call that more vehicles would be debuting in 2022 and 2023.
Shares of LI stock are up 13% year to date, compared to the S&P 500’s return of 27%. However, LI stock is up 103% since its IPO in July 2020.
According to TipRanks, Tim Hsiao, the analyst who initiated the Morgan Stanley upgrade, has a 53% success rate and an average return of 8.7% over a one-year period. Hsiao also has coverage for two other Chinese EV makers, Nio (NYSE:NIO) and Xpeng (NYSE:XPEV). His price targets are $64 and $71, respectively. Based on Hsiao’s coverage, it seems he is extremely bullish on the future of Chinese EV makers.
Let’s take a look at what other analysts on Wall Street are saying about Li Auto.
LI Stock Price Predictions
- Goldman Sachs has a price target of $62, a Wall Street high. Analyst Fei Fang believes Li Auto is differentiating itself from other EV makers by creating a compelling customer experience and innovating continuously.
- Jefferies has a price target of $44.50. Analyst Alexious Lee argues that Li Auto’s vehicle is superior to Nio and Xpeng’s offerings. The analyst also stated that Li Auto’s business structure will allow it to become more profitable than Nio and Xpeng in the long run.
- Citi has a price target of $42.50. Analyst Jeff Chung believes “the company’s second primary listing would be positive for the company as it should provide more cash for R&D initiatives, offset political/policy risks stemming from its US listing status and allow the company to potentially tap into more mainland Chinese institutional investors.”
- Deutsche Bank has a price target of $32. Analyst Edison Yu is mainly concerned about competition down the road from other EV makers. He acknowledges that Li Auto will produce more models in the future, but so will other EV competitors.
- Finally, Li Auto has an average price target of $42.68 across 18 firms.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
