Jefferies slashes price target on Li Auto Inc. [LI] – find out why.

Li Auto Inc. [NASDAQ: LI] gained 3.02% on the last trading session, reaching $23.53 price per share at the time. The company report on March 1, 2023 that Li Auto Inc. February 2023 Delivery Update.

“As a go-to premium SUV brand for families, we further enriched our L series and once again solidified our market position in the RMB300,000 to RMB500,000 price segment. On February 8, we officially launched Li L7, a five-seat flagship family SUV, and we are delighted to see that in the competitive RMB300,000 to RMB400,000 price segment of the five-seat SUV market, Li L7’s product strengths, embodied by its new-generation range extension system, spacious second row, and continuously evolving smart space and autonomous driving systems, have garnered widespread recognition from family users throughout China. We look forward to delivering Li L7 to its first users in early March,” commented Xiang Li, chairman and chief executive officer of Li Auto. “Meanwhile, as the latest addition to the Li L8 family, Li L8 Air has not only expanded the options available to family users but, more importantly, also strengthened Li L8’s competitiveness in the RMB300,000 to RMB400,000 six-seat SUV market. Furthermore, our six-seat flagship family SUV, Li L9, has topped the full-size SUV sales chart in China for five consecutive months since last September.”.

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Li Auto Inc. represents 976.97 million in outstanding shares, while the company has a total market value of $23.35 billion with the latest information. LI stock price has been found in the range of $23.25 to $24.07.

If compared to the average trading volume of 7.92M shares, LI reached a trading volume of 5329584 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 $34.22 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 1.70. 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.

Jefferies have made an estimate for Li Auto Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 28, 2022. While these analysts kept the previous recommendation, CLSA raised their target price to Buy. The new note on the price target was released on August 08, 2022, representing the official price target for Li Auto Inc. stock. Previously, the target price had yet another raise to $35, while HSBC Securities analysts kept a Buy rating on LI stock.

The Average True Range (ATR) for Li Auto Inc. is set at 1.19, with the Price to Sales ratio for LI stock in the period of the last 12 months amounting to 3.56. The Price to Book ratio for the last quarter was 3.53, with the Price to Cash per share for the same quarter was set at 8.26. Price to Free Cash Flow for LI in the course of the last twelve months was 21.82 with Quick ratio for the last quarter at 2.20.

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 7.00. With this latest performance, LI shares dropped by -2.12% in over the last four-week period, additionally sinking by -6.74% over the last 6 months – not to mention a drop of -16.53% 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 52.27, with the RSI for the last a single of trading hit 56.03, and the three-weeks RSI is set at 51.50 for Li Auto Inc. [LI]. The present Moving Average for the last 50 days of trading for this stock 23.66, while it was recorded at 22.46 for the last single week of trading, and 25.51 for the last 200 days.

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

Operating Margin for any stock indicates how profitable investing would be, and Li Auto Inc. [LI] shares currently have an operating margin of -8.07 and a Gross Margin at +19.41. Li Auto Inc.’s Net Margin is presently recorded at -4.44.

Return on Total Capital for LI is now -6.69, given the latest momentum, and Return on Invested Capital for the company is -3.83. Return on Equity for this stock declined to -4.65, with Return on Assets sitting at -2.71. When it comes to the capital structure of this company, Li Auto Inc. [LI] has a Total Debt to Total Equity ratio set at 27.34. Additionally, LI Total Debt to Total Capital is recorded at 21.47, with Total Debt to Total Assets ending up at 14.17. Long-Term Debt to Equity for the company is recorded at 24.92, with the Long-Term Debt to Total Capital now at 19.57.

Reflecting on the efficiency of the workforce at the company, Li Auto Inc. [LI] managed to generate an average of -$120,641 per employee. Receivables Turnover for the company is 522.00 with a Total Asset Turnover recorded at a value of 0.61.Li Auto Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.20 and a Current Ratio set at 2.40.

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

There are presently around $3,446 million, or 29.50% of LI stock, in the hands of institutional investors. The top three institutional holders of LI stocks are: VANGUARD GROUP INC with ownership of 19,101,217, which is approximately -3.439% of the company’s market cap and around 0.04% of the total institutional ownership; FMR LLC, holding 13,664,881 shares of the stock with an approximate value of $321.54 million in LI stocks shares; and RENAISSANCE TECHNOLOGIES LLC, currently with $239.89 million in LI stock with ownership of nearly -17.912% of the company’s market capitalization.

Positions in Li Auto Inc. stocks held by institutional investors increased at the end of Monday and at the time of the Monday reporting period, where 108 institutional holders increased their position in Li Auto Inc. [NASDAQ:LI] by around 35,465,464 shares. Additionally, 163 investors decreased positions by around 111,810,562 shares, while 35 investors held positions by with 844,555 shares. The mentioned changes placed institutional holdings at 146,431,471 shares, according to the latest SEC report filing. LI stock had 50 new institutional investments in for a total of 19,350,557 shares, while 81 institutional investors sold positions of 39,236,040 shares during the same period.


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