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Investing.com - Tiger Securities lowered its price target on Li Auto (NASDAQ:LI) to $28 from $33 on Thursday, while maintaining a Buy rating on the Chinese electric vehicle maker. The company, currently valued at $23.87 billion, trades at a P/E ratio of 20.77x and is considered undervalued according to InvestingPro Fair Value analysis.
The price target reduction follows Li Auto’s second quarter 2025 results, which Tiger Securities described as "largely in line with expectations" after the company had previously lowered its delivery guidance earlier in the quarter.
Li Auto delivered 111,074 vehicles in the second quarter, representing a modest 2% year-over-year increase and a 20% sequential rebound from the first quarter of 2025.
Total revenues for the quarter reached RMB 30.2 billion ($4.2 billion), down 4.5% year-over-year but up 16.7% from the previous quarter, with vehicle sales contributing RMB 28.9 billion.
The company’s average selling price declined compared to the same period last year due to product mix changes and higher incentives, though vehicle sales still improved 17% quarter-on-quarter as delivery volumes recovered.
In other recent news, Li Auto Inc. reported its Q2 2025 earnings, which fell short of analysts’ expectations. The company announced an earnings per share (EPS) of $1.37, which was below the anticipated $1.81, representing a surprise of -24.31%. Revenue also did not meet forecasts, totaling $30.24 billion compared to the projected $33 billion, a shortfall of -8.36%. These figures indicate a significant miss in both earnings and revenue for the quarter. Despite these results, Li Auto’s stock experienced a rise, suggesting investor confidence in the company’s strategic plans and future prospects.
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