Li Auto Inc. experienced a notable decline in its share price on Monday, opening at $18.23 after JPMorgan Chase & Co. downgraded the stock from a neutral rating to an underweight rating. The stock had closed at $18.97 on the previous trading day. Following this adjustment, JPMorgan has set a price target of $14.00 for Li Auto.
As of the latest trading session, Li Auto shares were priced at $18.3550, with a trading volume of 1,537,883 shares. This downgrade reflects growing caution among analysts regarding the company’s stock performance.
Analyst Ratings and Market Sentiment
Several equity research analysts have recently published reports on Li Auto, contributing to a mixed sentiment surrounding the company’s stock. Piper Sandler raised its price objective from $18.00 to $19.00 with a “neutral” rating on January 8, 2024. Conversely, Weiss Ratings reiterated a “sell (d+)” rating in a report dated December 29, 2023.
In a separate analysis, Citigroup adjusted its price target from $20.20 to $18.50 while maintaining a “neutral” rating on January 15, 2024. Jefferies Financial Group also reduced its price target from $28.80 to $17.50 on January 23, 2024, while HSBC downgraded the stock from a “strong-buy” to a “hold” rating back on December 4, 2023.
Overall, the consensus among analysts includes one Strong Buy rating, one Buy rating, twelve Hold ratings, and four Sell ratings. According to MarketBeat, the average rating for Li Auto is “Reduce,” with an average price target of $19.59.
Financial Health and Company Overview
Li Auto’s financial metrics indicate a stable position, with a debt-to-equity ratio of 0.05. The company boasts a current ratio of 1.80 and a quick ratio of 1.67. Its 50-day moving average stands at $17.01, while the two-hundred-day moving average is $20.85.
Founded to address concerns about range anxiety among electric vehicle buyers, Li Auto develops, manufactures, and sells smart electric vehicles, particularly focusing on range-extended electric SUVs. The company operates from its headquarters in China, serving the domestic market through online channels and a network of retail locations. Its product lineup is designed to combine electric propulsion with advanced connectivity and driver-assistance features, catering primarily to family users.
As Li Auto navigates this challenging market landscape, investors will be closely monitoring further analyst ratings and company performance in the coming weeks.
