Citi initiated a “30-day positive catalyst watch” on Li Auto (NASDAQ:LI) while maintaining a Buy rating and a $54.30 price target on the shares.
The bank is optimistic about LI’s recent strong shipment and potential sector recovery into July 2023. It highlighted four key potentially positive catalysts to watch over the next 30 days: positive insurance numbers, signs of broader sector recovery, improvements in margins and cash flow, and new product launches.
Citi expects further shipment acceleration, continued sector growth, increased margins and cash flow, and the introduction of both BEV and EREV versions of MPVs by Li Auto.