© Reuters. Li Auto (LI) gains as Citi adjusts for new model launches
By Michael Elkins
Citi reiterated a Buy rating on Li Auto (NASDAQ:) and raised the price target on the stock to $51.50 (From $48.00) following recent new model launches by the electronic vehicle maker.
Analysts wrote in a note, “On 08-Feb-2023, Li Auto launched L7 and a new configuration of L8 with lower MSRPs for both. In summary, L7 will offer three configurations: Air Rmb319.8k, Pro Rmb339.8k and Max Rmb379.8k, and L8 will also offer three configurations: Air Rmb339.8k, Pro Rmb359.8k and Max Rmb399.8k. We believe L7 and L8 enjoy competitive advantage, given they dominate a certain that has few competitive models. Also, we include Model Y BEV into PHEV category for better comparison, as we think Model Y may have limited overlap with L7/L8 models given they are in different class segments. Given the starting price of L7/L8 is not as low as we expected, we expect combined stabilized monthly sales of three models (L7/L8/L9) at 30k units and 25k units.”
Following the product launches, Citi revised their 2023 sales forecast to from 210k to 235k units and also updated the unit price of the models, which lead to 32%/17%/19% higher revenues vs. prior estimates in 2023/24/25, and earnings changing by -5%/+7%/+15%.
Shares of LI are up 3.89% in pre-market trading on Thursday.
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