Bernstein Downgrades Li Auto on Competitive Pressures
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BTCCSquare news:
Bernstein analysts have downgraded Li Auto (LI) from Buy to Hold, slashing the price target to $26 from $33. The MOVE reflects mounting challenges in China's EV sector, where intensifying competition in plug-in hybrid and extended-range SUVs is eroding margins. Despite Li Auto's technological edge in EREV systems and robust ADAS capabilities, the firm now sees limited upside over the next 12 months.
Shares have tumbled 25% in the past month as the company faces what analyst Eunice Lee calls 'the paradox of success'—its dominance in EREV technology has attracted swarms of competitors to the niche. The stock was down another 1.1% in pre-market trading Wednesday, underperforming broader EV market trends.
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