why Li Auto Inc. [LI] is a Good Choice for Investors After New Price Target of $42.70


Li Auto Inc. [NASDAQ: LI] loss -0.96% on the last trading session, reaching $35.10 price per share at the time. The company report on December 1, 2021 that Li Auto Inc. November 2021 Delivery Update.

Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), an innovator in China’s new energy vehicle market, announced that the Company delivered 13,485 Li ONEs in November 2021, representing a 190.2% year-over-year increase. Total deliveries for the eleven months ended November 30, 2021 reached 76,404, taking cumulative deliveries to 110,001.

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“We set a new monthly record with over 13,000 deliveries of Li ONEs in November, making Li ONE the first domestic branded premium model priced above RMB300,000 in China to achieve the 10,000 monthly deliveries milestone. We are excited to see Li ONE emerge as one of the best choices for large SUV users and families in China. This impressive result reflects widespread user endorsement of our outstanding product features and performance, and we deeply appreciate our users’ recognition. Looking ahead, we will continue to create products and services that can delight our users and make ourselves proud,” said Yanan Shen, co-founder and president of Li Auto.

Li Auto Inc. represents 905.05 million in outstanding shares, while the company has a total market value of $38.70 billion with the latest information. LI stock price has been found in the range of $34.98 to $37.45.

If compared to the average trading volume of 7.26M shares, LI reached a trading volume of 19354362 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Li Auto Inc. [LI]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LI shares is $42.70 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LI stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Bernstein have made an estimate for Li Auto Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on October 28, 2021. While these analysts kept the previous recommendation, Nomura raised their target price to Buy. The new note on the price target was released on October 14, 2021, representing the official price target for Li Auto Inc. stock. On June 07, 2021, analysts increased their price target for LI shares from 60 to 62.

The Average True Range (ATR) for Li Auto Inc. is set at 1.92, with the Price to Sales ratio for LI stock in the period of the last 12 months amounting to 16.18. The Price to Book ratio for the last quarter was 6.91, with the Price to Cash per share for the same quarter was set at 4.94.

Trading performance analysis for LI stock

Li Auto Inc. [LI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 10.59. With this latest performance, LI shares gained by 8.53% in over the last four-week period, additionally plugging by 40.62% over the last 6 months – not to mention a rise of 0.69% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LI stock in for the last two-week period is set at 64.92, with the RSI for the last a single of trading hit 69.34, and the three-weeks RSI is set at 62.03 for Li Auto Inc. [LI]. The present Moving Average for the last 50 days of trading for this stock 30.32, while it was recorded at 34.01 for the last single week of trading, and 27.42 for the last 200 days.

Li Auto Inc. [LI]: A deeper dive into fundamental analysis

Li Auto Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 5.00 and a Current Ratio set at 5.20.

Li Auto Inc. [LI]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Li Auto Inc. posted -0.08/share EPS, while the average EPS was predicted by analysts to be reported at -0.04/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -100.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LI.

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An analysis of insider ownership at Li Auto Inc. [LI]

There are presently around $6,017 million, or 20.70% of LI stock, in the hands of institutional investors. The top three institutional holders of LI stocks are: BLACKROCK INC. with ownership of 26,990,990, which is approximately 13.152% of the company’s market cap and around 0.08% of the total institutional ownership; BAILLIE GIFFORD & CO, holding 14,796,649 shares of the stock with an approximate value of $519.36 million in LI stocks shares; and VANGUARD GROUP INC, currently with $519.1 million in LI stock with ownership of nearly -9.126% of the company’s market capitalization.

145 institutional holders increased their position in Li Auto Inc. [NASDAQ:LI] by around 34,721,790 shares. Additionally, 91 investors decreased positions by around 11,682,085 shares, while 35 investors held positions by with 125,014,187 shares. The mentioned changes placed institutional holdings at 171,418,062 shares, according to the latest SEC report filing. LI stock had 43 new institutional investments in for a total of 9,634,125 shares, while 39 institutional investors sold positions of 3,583,105 shares during the same period.