On June 2, Goldman Sachs raised the price target on Li Auto Inc. (NASDAQ:LI) from $31.70 to $35.30 and maintained its Buy rating on the stock.
Tina Hou from Goldman Sachs made the price target upgrade after the company’s gross profit and GAAP net profit exceeded Hou’s estimates by 6% and 21%, respectively, driven by strong vehicle sales. The company’s financial performance, primarily its gross margin of 20.5%, is a major catalyst for its growth, the analyst highlighted.
A close-up of an auto assembly line, revealing the complexity of the manufacturing process.
LI delivered over 92,000 vehicles in Q1 FY2025, a 15.5% increase year-over-year. The analyst attributes increased sales volumes to its “refreshed” L series and its MEGA Home product line. The analyst expects the second half of 2025 to be prominent in terms of sales volumes, as reflected by its Q1 numbers.
Li Auto Inc. expects to generate RMB 32.5 billion and RMB 33.8 billion in projected revenue in Q2 FY2025, with expected sales volumes reaching 123,000 to 128,000 units. After promising financial performance during Q1, Hou expects LI to improve its vehicle margin in Q3 FY2025 with the release of new models.
Li Auto Inc. is one of China’s largest extended-range electric vehicle companies, providing customers with safe, reliable, and convenient vehicles. Founded in 2015, the company’s product line today consists of multi-purpose vehicles and sport utility vehicles, along with supporting services.
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