0720 GMT - Li Auto may face some near-term margin pressure, Daiwa's Kelvin Lau writes in a note. The analyst expects the Chinese automaker's vehicle gross margin to fall to 19% in 1Q and be squeezed further in 2Q. As for its gross margin, he doesn't expect much of a recovery in 2H due to the coming launch of a new fully electric model, which will likely be margin dilutive. Lau adds that the carmaker may lower battery costs further or leverage its economies of scale to manage costs better. Daiwa maintains a buy rating on the stock and raises the target price to $32.50 from $23.40 following signs of progress in U.S.-China trade talks. Li Auto's ADRs last closed at $27.96. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
May 14, 2025 03:20 ET (07:20 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。