Bank of America reiterates Buy on Li Auto following 3Q beat By Investing.com

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<span>© Reuters. Bank of America reiterates Buy on Li Auto (LI) following 3Q beat</span><br />
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<p>Bank of America Global Research reiterated a Buy rating on Li Auto (NASDAQ:) and raised their 12-month price target on the stock to $62.00 (from $61.00) after the electric automaker reported their 3Q earnings results.</p>
<p>Li Auto announced its third-quarter 2023 results, reporting a revenue of RMB34.B. A significant increase of 271% compared to the same period last year and a 21% growth from the previous quarter. The gross margin saw a rise to 22%, up by 9.3% YoY and 0.2% compared to last quarter.</p>
<p>The low base in 3Q22 was mainly due to the inventory provision and losses on purchase commitments related to Li ONE component.</p>
<p>Operating income for the current quarter was RMB2.3B, a noteworthy turnaround from the operating loss of RMB2.1Bin the third quarter of 2022. The operating income also experienced a positive 44% change QoQ, attributed to a lower OPEX to sales ratio.</p>
<p>Li Auto plans to launch its Mega model in December 2023, with showroom debuts scheduled for January 2024 and deliveries starting in February 2024.</p>
<p>The Li Mega distinguishes itself through its charging capabilities, design, and spaciousness. It features an 800-volt platform and 5C-rate charging, offering a peak charging power of 520Kw and supporting a 500km driving range in just 12 minutes.</p>
<p>In October, Li Auto conducted a capacity update in Changzhou. The company anticipates that its three production lines in Changzhou, dedicated to Extended-Range Electric Vehicles (EREVs), along with one production line in Beijing, will adequately support its production needs for the next two years.</p>
<p>For the fourth quarter of 2023, Li Auto anticipates delivering between 125,000 and 128,000 units, a YoY increase of 170-176% and a QoQ growth of 19-22%. Additionally, the company projects its revenue for the same period to fall within the range of RMB38.5-39.4B, showcasing a substantial YoY surge of 118-123% and a QoQ rise of 12-14%.</p>
<p>Shares of LI are even in pre-market trading Friday morning. </p>
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<br /><a href="https://www.investing.com/news/stock-market-news/bank-of-america-reiterates-buy-on-li-auto-following-3q-beat-432SI-3230938">Source link </a></p><p>The post <a href="https://forextraderhub.com/bank-of-america-reiterates-buy-on-li-auto-following-3q-beat-by-investing-com.html">Bank of America reiterates Buy on Li Auto following 3Q beat By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>