Goldman Sachs has issued a report maintaining a Buy rating on Li Auto.

It opined that the company held a 5% market share in China's new energy vehicle market last year and is already well-positioned into this year with significant improvement shown in its urban Navigate on Autopilot (NOA) performance and strengthening AI development, which should benefit from the ongoing trend of intelligent driving to shore up sales growth and enhance profit margins.

Goldman Sachs cut its 2024-2026 non-GAAP net profit forecasts for Li Auto by 3-7%, mainly due to a reduction in pricing assumptions caused by the company's offer of a 0% interest car purchase plan to consumers since the end of November 2024.

It also lowered its target price for the company from HK$140 to HK$131.