On May 29, Jefferies analyst Johnson Wan reiterated a ‘Buy’ rating on Li Auto Inc. (NASDAQ:LI) after the company posted solid first-quarter 2025 results. Nevertheless, the analyst cut the price target to HK$132.10 from HK$145.80. The adjustment comes even as the analyst firm remains bullish about the company’s innovation and expansion of its product lineup.
A fleet of electric light vehicles recharging their batteries in a parking lot.
The adjustment follows the Chinese automaker delivering a 1.1% year-over-year increase in revenue in Q1 2025 to RMB25.9 billion. Net profit in the quarter stood at RMB646.6 million. Vehicle margin stood at 19.8%, beating Jefferies estimates of 19.3%. The better-than-expected results come as Li Auto prepares to introduce new vehicles in the market.
Li Auto plans to launch the i8 model featuring Vehicle to Load capabilities in July. The i6 model is also slated for release in September. The introduction of the two models is expected to strengthen the company’s competitive edge in the market. They are also likely to offer new growth opportunities, affirming why Jefferies has a buy rating on the stock.
Li Auto is a Chinese automaker that designs, develops, manufactures, and sells smart electric vehicles. It is a leader in China’s new energy vehicle market, commercializing an extended range of electric cars.
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