New Trade for February 5th, 2024

Li Auto (NASDAQ:LI) has been navigating through macroeconomic concerns and a slow growth phase in China’s EV market. Despite these headwinds, the company has demonstrated commendable performance in recent quarters.

In December 2023, Li Auto reported a remarkable 137% year-over-year increase in deliveries, totaling 50,353 units. This surge brought its annual deliveries for 2023 to 376,030 units, a 182% increase from the previous year. Notably, Li Auto stands out among its peers for being profitable in each of the first three quarters of 2023.

The company’s growth trajectory looks promising, thanks to new EV models like MEGA, a strategic partnership with Nvidia (NASDAQ:NVDA), and effective cost-management initiatives. These factors are contributing to Li Auto’s increasing profitability.

Bank of America analysts have recently highlighted Li Auto as one of their “Top Picks” for 2024, maintaining a “buy” rating with a $55 price target. They anticipate Li Auto to gain a larger share in the Chinese EV market, driven by its expanding product range. The optimism also stems from Li Auto’s growing presence in the luxury/premium EV segment and a robust pipeline of upcoming models.

With a unanimous “strong buy” consensus rating from six analysts and an average price target of $53.58, Li Auto’s stock shows over 95% upside potential from its current levels.

In summary, Wall Street’s bullish outlook on Li Auto is underpinned by the company’s solid management and the sustained demand for its EVs. These factors are expected to drive revenue and profitability growth for Li Auto in the coming years.

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You could buy LI shares outright, but for our less risk-averse readers, considering an options trade could offer the potential for quicker, higher gains. Ready to up the ante? Trading options on LI could be your next bold move. Click here to learn how…


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