On Thursday, Morgan Stanley maintained its Overweight rating and $74.00 price target for Li Auto (NASDAQ:LI), despite the company's recent announcement of lower delivery guidance for the first quarter. Li Auto revised its forecast from the previously estimated 100,000-103,000 units down to 76,000-78,000 units.
This updated projection suggests that March deliveries are expected to be between 24,600 and 26,600 vehicles, marking a 21-31% month-over-month increase. The company had reported 18,000 deliveries as of March 17.
Li Auto's founder has indicated a strategic shift, emphasizing the sale of the MEGA model in major cities with high purchasing power and expediting the establishment of super charging stations. This adjustment follows the less-than-anticipated order intake after the introduction of the MEGA and the refreshed L series models.
The updated guidance was not entirely unexpected, as the market had anticipated a downward revision due to weaker order intake and deliveries. However, the extent of the guidance cut was more significant than anticipated, potentially providing Li Auto with some leeway as it adapts its product and marketing strategies.
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