LI - 2 Wall Street Analysts Just Hedged Their Bullish Calls on Li Auto. Is It Still a Buy?
2024-03-22 16:21:00 ET
Upstart Chinese automaker Li Auto (NASDAQ: LI) on Thursday cut its deliveries estimate for the first quarter, acknowledging in a statement that the ramp-up plan for its first fully electric vehicle (EV), the Li Mega, might have been too optimistic.
Wall Street responded quickly. Analysts at Barclays and Citi both cut their price targets for Li's stock on Friday. Is it time for shareholders to be concerned?
Li Auto on Thursday said that it now expects its vehicle deliveries for the first quarter to fall between 76,000 and 78,000 vehicles. That was a significant cut, as just a few weeks ago, Li had told investors to expect it to deliver between 100,000 and 103,000 vehicles in the quarter. But it had overestimated early demand for its new Mega, the company's first purely electric vehicle, launched on March 1.
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2 Wall Street Analysts Just Hedged Their Bullish Calls on Li Auto. Is It Still a Buy?