Daiwa Securities slashes price target on Li Auto Inc ADR [LI] – find out why.

Edison Baldwin

Li Auto Inc ADR [NASDAQ: LI] stock went on a downward path that fall over -1.64% on Monday, amounting to a one-week price decrease of less than -4.31%.

Over the last 12 months, LI stock dropped by -10.13%. The one-year Li Auto Inc ADR stock forecast points to a potential upside of 23.08. The average equity rating for LI stock is currently 1.92, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $17.93 billion, with 831.41 million shares outstanding and 826.64 million shares in the current float. Compared to the average trading volume of 5.60M shares, LI stock reached a trading volume of 5436386 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Li Auto Inc ADR [LI]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LI shares is $28.03 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 1.92. 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.

Daiwa Securities have made an estimate for Li Auto Inc ADR shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 03, 2025. The new note on the price target was released on August 28, 2025, representing the official price target for Li Auto Inc ADR stock. Previously, the target price had yet another raise to $21, while Macquarie analysts kept a Underperform rating on LI stock.

The Price to Book ratio for the last quarter was 2.13, with the Price to Cash per share for the same quarter was set at 17.95.

LI Stock Performance Analysis:

Li Auto Inc ADR [LI] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.31. With this latest performance, LI shares dropped by -11.49% in over the last four-week period, additionally sinking by -11.28% over the last 6 months – not to mention a drop of -10.13% 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 32.00, with the RSI for the last a single of trading hit 0.66, and the three-weeks RSI is set at 0.77 for Li Auto Inc ADR [LI]. The present Moving Average for the last 50 days of trading for this stock 24.07, while it was recorded at 21.91 for the last single week of trading, and 25.80 for the last 200 days.

Insight into Li Auto Inc ADR Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Li Auto Inc ADR [LI] shares currently have an operating margin of 5.30% and a Gross Margin at 20.64%. Li Auto Inc ADR’s Net Margin is presently recorded at 5.65%.

Li Auto Inc ADR (LI) Capital Structure & Debt Analysis

According to recent financial data for Li Auto Inc ADR. ( LI), the Return on Equity (ROE) stands at 11.91%, reflecting robust shareholder value creation. The Return on Assets (ROA) is 5.29%, reflecting the company’s efficiency in generating profits from its assets. Additionally, Li Auto Inc ADR’s Return on Invested Capital (ROIC) is 9.82%, showcasing its effectiveness in deploying capital for earnings.

Li Auto Inc ADR (LI) Efficiency & Liquidity Metrics

Based on Li Auto Inc ADR’s (LI) latest financial statements, the Debt-to-Equity Ratio is 0.23%, indicating its reliance on debt financing relative to shareholder equity.

Li Auto Inc ADR (LI) Efficiency & Liquidity Metrics

From an operational efficiency perspective, Li Auto Inc ADR. (LI) effectively leverages its workforce, generating an average of $34730.84 per employee. The company’s liquidity position is robust, with a Current Ratio of 1.73% and a Quick Ratio of 1.57%, indicating strong ability to cover short-term liabilities.

LI Stock EPS

With the latest financial reports released by the company, Li Auto Inc ADR posted 3.63/share EPS, while the average EPS was predicted by analysts to be reported at 3.02/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 0.61. 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. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Li Auto Inc ADR go to 5.98%.

Li Auto Inc ADR [LI] Institutonal Ownership Details

There are presently around $5.40%, or 5.40%% of LI stock, in the hands of institutional investors. The top three institutional holders of LI stocks are: XIAMEN XINWEIDACHUANG INVESTMENT PARTNERSHIP (LIMITED PARTNERSHIP) with ownership of 9.15 million shares, which is approximately 0.871%. RENAISSANCE TECHNOLOGIES LLC, holding 7.25 million shares of the stock with an approximate value of $$129.69 million in LI stocks shares; and RENAISSANCE TECHNOLOGIES LLC, currently with $$122.75 million in LI stock with ownership which is approximately 0.6533%.

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