LI - Why Li Auto Stock Raced Higher on Monday
2024-04-29 18:27:58 ET
Like numerous electric vehicle (EV) stocks lately, Li Auto (NASDAQ: LI) had essentially been punished by the market on concerns that demand was waning for such cars. That gloomy sentiment wasn't in evidence on Monday, as investors turbo-charged the stock with a nearly 8% gain in price. This was aided in no small measure by an analyst's recommendation upgrade.
Well before market open, 86Research pushed its Li Auto recommendation up one peg to buy from its previous hold. The reasoning behind the move wasn't immediately clear, and there was no indication of price target.
However, the adjustment comes amid something of a bullish pundit stampede on Chinese EV stocks . Last week, influential U.S. investment bank Morgan Stanley added Li and peers Nio and XPeng to its "research tactical ideas" list. Morgan Stanley is convinced that the stock prices of all three will rise over the coming 15 days.
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Why Li Auto Stock Raced Higher on Monday