Analysis Report | Are New Energy Vehicle Stocks Bullish Again? Can NIO and BYD Rise Another 50%?
Goldman Sachs stated that although the ideal order momentum remains strong, the increasingly fierce competition may force the company to adopt more aggressive promotional activities to cope, which will limit the upside potential of its automotive gross margin in the second half of the year.
Morgan Stanley: Maintains "Overweight" rating for Li Auto, with a target price of $53.
Based on the latest closing price of $35.19, this price implies a 51% upside!
The bank stated that Li Auto delivered 36,100 vehicles in September, a 3% increase MoM, and has maintained this upward trend for eight consecutive months. The monthly shipments of the L7, L8, and L9 models have consistently exceeded 10,000 units. The cumulative sales volume for the third quarter reached 105,000 vehicles, surpassing the company's guidance of 100,000 to 103,000 vehicles for the quarter. As of the end of September, Li Auto had 361 retail stores nationwide, an increase of 15 stores MoM.
On the other hand, Li Auto's competitor, Huawei, has seen strong and continuous demand for its Aito M7, with over 30,000 confirmed orders from September 12 to 30. Although Li Auto's order momentum remains strong, increasing competition may force the company to adopt more aggressive promotional activities, which could limit the upside potential of its gross margin in the second half of the year.
In addition, the market is also closely watching the upcoming launch of Li Mega in December, which will be an important model for investors to evaluate Li Auto's strategy for its upcoming lineup of pure electric vehicles.
AXA Securities: Maintains "Buy" rating for BYD, with a target price of HK$360.
Based on the latest closing price of HK$238.6, this price implies a 51% upside!