03:50 PM EDT, 06/10/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target to USD30 from USD15 on a P/E multiple of 21.3x our 2025 EPS estimate, which we raise to CNY10.07 (from CNY9.66) to reflect Li Auto's ( LI ) resilient Q1 profitability. Net income growth was +9.4% Y/Y to CNY647 million, accompanied by a return to operating profitability (CNY272 million vs. prior year's loss) due to cost discipline (opex down 14% Y/Y) and stable gross margins (20.5%) amid seasonal weakness. However, we lower our 2026 EPS estimate to CNY13.01 (from CNY14.68) due to anticipated headwinds from aggressive BEV investments (i.e., Li i8 launch, VLA Driver ADAS), persistent pricing pressure in the premium segment (Li MEGA Home's niche positioning, at CNY559,800), and higher R&D/retail costs (Q1 R&D: CNY2.5B; 500+ stores). While near-term execution supports the 2025 upgrade, the 2026 reduction acknowledges delayed BEV margin scalability and moderated volume upside, aligning with our Hold stance that balances operational resilience against mounting capital intensity and competition.