Shares of Li Auto Inc. (NASDAQ:LI) experienced a notable decline before the market opened on Monday, following a downgrade from JPMorgan Chase & Co.. The financial institution lowered its rating from neutral to underweight, leading to the stock opening at $18.23, down from its previous close of $18.97. Currently, JPMorgan has set a price target of $14.00 for the shares.
As of the most recent trading session, Li Auto shares were priced at $18.3550, with a trading volume of 1,537,883 shares. The downgrade highlights a shift in investor sentiment, prompting scrutiny of the stock by various research analysts.
Analysts Weigh In on Li Auto’s Future
In addition to JPMorgan’s downgrade, other analysts have also provided insights into Li Auto’s stock performance. Piper Sandler increased its price objective from $18.00 to $19.00 while maintaining a neutral rating in a report released on January 8. Conversely, Weiss Ratings reaffirmed a “sell (d+)” rating on December 29, indicating ongoing concerns about the company’s performance.
Further adjustments were made by Citigroup, which revised its price target from $20.20 to $18.50 and assigned a neutral rating on January 15. Similarly, Jefferies Financial Group restated a hold rating with a reduced price target of $17.50, down from $28.80, on January 23. HSBC also downgraded the stock from a “strong-buy” to a “hold” rating on December 4.
The current consensus among analysts includes one strong buy, one buy, twelve hold, and four sell ratings. MarketBeat’s average rating for Li Auto stands at “Reduce,” with a price target of $19.59.
Financial Metrics and Company Overview
Li Auto is currently trading at a debt-to-equity ratio of 0.05, a current ratio of 1.80, and a quick ratio of 1.67. The company’s 50-day moving average is $17.01, while the 200-day moving average is $20.85.
Founded in China, Li Auto develops, manufactures, and sells smart electric vehicles, with a significant emphasis on range-extended electric SUVs aimed at family use. The company addresses range anxiety among electric vehicle buyers by integrating a small internal combustion engine as a range extender alongside a large battery. This combination allows for a longer driving range while maintaining the electric driving experience.
Li Auto serves its domestic market through both online channels and a network of retail and showroom locations. The company’s product offerings emphasize multi-occupant SUVs that feature electric propulsion, advanced in-vehicle connectivity, and driver-assistance technologies.
As the market continues to respond to these recent developments, investors and analysts alike will be closely monitoring Li Auto’s performance and strategic direction in the evolving electric vehicle landscape.
