LI - Why Li Auto Stock Fell Today
2024-03-18 19:32:58 ET
Shares of Li Auto (NASDAQ: LI) are down 12.3% as of 3:45 p.m. ET Monday after a noted Wall Street analyst firm downgraded the Chinese electric vehicle (EV) maker.
In a note to clients earlier today, Bank of America securities lowered its per-share price on Li Auto to $55 from $60. Bank of America simultaneously reiterated its buy rating on the stock.
To justify its relative bearishness, Bank of America says it has lowered its volume sales estimates for Li Auto by 6% and 4%, respectively, for 2024 and 2025 as a result of lighter-than-expected new orders for the MEGA Multi-Purpose Vehicle (MVP) model. The firm also reduced its net income estimates for Li by 9% and 7% this year and next, respectively. Bank of America further pointed to lower entry-level prices and higher discounts on Li's 2024 L-series models following the recent launch of redesigned Li L7, L8, and L9 models earlier this month.
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Why Li Auto Stock Fell Today