CICC raised Li Auto’s price target by 37.7%, hiked 2023 net profit forecast by 50%

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Li Auto’s car deliveries hit a record high in the second quarter of the year, and is bullish that the scale effect will lead the company to exceed its expected results, CICC said in a note.

Li Auto has started test drives for China’s first NOA and commute NOA, which CICC believed demonstrated the carmaker’s positive progress in its intelligent driving business and looking to the next stage, CICC is optimistic that the company could maintain its leading position in the industry.

CICC raised Li Auto’s net profit forecast by 50% to 9.1 billion yuan for this year, and by 17% to 15.3 billion yuan for next year. It lifted its H-share target price by 37.7% to HK$230 and maintained an Outperform rating.