Morgan Stanley Comments on Li Auto (LI) Q1 Volume Guidance

Morgan Stanley analyst Tim Hsiao reiterated an Overweight rating and $74.00 price target on Li Auto (NASDAQ: LI).

The analyst comments "1Q volume guidance lowered to 76-78k: Given weaker-than-expected order intake following the launch of MEGA and L series facelifts, Li Auto lowered their 1Q delivery guidance from 100-103k units to 76-78k units today, implying 24.6k - 26.6k units for March (+21-31% MoM), though a low bar to beat in light of MTD (as of Mar 17) deliveries of 18k. Li's founder also mentioned that they will focus on selling the MEGA in major cities with stronger purchasing power, and accelerate the rollout of super charging stations. Not a complete surprise: The Street has been looking for a guidance cut given softer order-intake/deliveries; however, the revision scale came in more aggressive than expectation, leaving some buffer to Li amid adjustment to product/marketing strategies. The recent stock sell-off has largely discounted the headwinds, while further stock movement will hinge on Li Auto’s remedies to boost L series sales and recalibrate BEV strategies, in our view."

For an analyst ratings summary and ratings history on Li Auto click here. For more ratings news on Li Auto click here.

Shares of Li Auto closed at $34.08 yesterday.

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