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Li Auto (NASDAQ:LI) stock is up 1.5% in pre-open Tuesday after UBS analyst Paul Gong introduced it to the bank’s Key Call list.
The move comes after the company said it received 30,000 orders within 72 hours for its recently-launched SUV – L9.
“If monthly sales exceed 10k units, which we think is likely, L9 would be the highest-priced model among Chinese auto brands to achieve such sales and would leave more room for Li Auto to add new models to its portfolio. We believe Li Auto is on track to generate the highest revenue growth and margins among new EV makers,” Gong told clients in a note.
The analyst hiked the price target to $60.00 per share from $52.00 to reflect “significantly enhanced growth potential.”
Similarly, HSBC analyst Yuqian Ding hiked the price target to $47.00 per share from $35.00 on boosted volume expansion.
“We expect the ramp-up of its new model L9 from 3Q22e, more new model offerings including BEV type in 2023e, and potentially more favorable EV policies in the mid-long term could further catalyze the stock price,” Ding wrote in a client note.
