Li Auto Stock Downgraded by Barclays, Price Target Cut to $25
Barclays analyst Jiong Shao has downgraded Li Auto (LI) stock from “overweight” to “equal weight” and cut the price target from $39 to $25 per share. The downgrade represents a potential upside of 4.7% from its prior closing price, but falls well below the analysts’ consensus estimate of $45.36 per share.
The downgrade comes as Li Auto faces ongoing pressure from both investors and competitors. The company recently announced a series of price drops for its EVs in response to increased competition in the space. The price cuts affected four of the five EV models sold by Li Auto, with the only unaffected model being the Li L6, which was recently launched.
As a result of these challenges, LI stock has been trending downwards. As of Thursday morning, the stock was down 2% with roughly 1.5 million shares traded, below its daily average trading volume of about 8.2 million shares.
Investors should be aware of the ongoing challenges facing Li Auto and carefully consider the risks before making any investment decisions.
