Bond.az reports that BofA Securities lowered its price target on Li Auto Inc. (NASDAQ:LI) to $18.00 from $22.00 while maintaining a Neutral rating. The stock currently trades at $15.47, near its 52-week low of $15.29, and has declined 43% over the past year.
Bond.az data suggests the stock appears undervalued at current levels. The firm reduced its forecast after Li Auto guided for 95,000 to 100,000 vehicle deliveries in Q2 2026, representing a 4.5% to 10% year-over-year decline. The company projected Q2 revenue of RMB 24.1 billion to RMB 25.4 billion, down 16% to 20% year-over-year.
BofA Securities cut its 2026 and 2027 volume sales estimates by 5% each. The firm also lowered its 2026 gross profit margin forecast by 0.8 percentage points and its 2027 margin estimate by 0.1 percentage points.
The firm expects Li Auto to record a RMB 2.7 billion non-GAAP net loss in 2026. The new price target of $18 per ADS, or HKD 70, reflects lower sales and margin projections.
In other news, Li Auto reported Q1 2026 revenue of RMB 23.0 billion, exceeding analyst expectations, but a larger-than-anticipated loss per share.
