LI Stock Price: $60 Target By Goldman Sachs

By Amit Chowdhry ● December 6, 2020
  • The stock price of Li Auto Inc. (NASDAQ: LI) has received a price target increase from $20.60 to $60 by Goldman Sachs. These are the details.

The stock price of Li Auto Inc. (NASDAQ: LI) has received a price target increase from $20.60 to $60 by Goldman Sachs. At the current stock price, this target imputes a 96.53% upside.

Goldman Sachs analyst Fei Fang also upgraded the rating from “Positive” to “Conviction Buy.” Fang pointed out that the company turned earnings positive just 3 quarters after launching its inaugural product called the Li ONE.

And Fang noted that Li Auto differentiates itself from the broader Chinese automotive market by offering a compelling EV experience. Plus Fang believes that the Li ONE is the first step in a larger innovation plan that is going to provide “significant optionality value for the share price,” according to TheFly.

On Friday December 4, Li Auto shares fell over 5%. One of the triggers for the stock price drop is due to 47 million shares being offered at $29 per ADS. This would enable the company to raise about $1.5 billion. Goldman Sachs, UBS, and China International Capital Corporation will have a 30-day option to buy an additional 7.05 million shares. With this new capital, Li Auto plans to use it for R&D related to its next-generation EV platforms such as new batteries, high-speed charging systems, and autonomous technologies.

Disclosure: I have a small LI position in my stock portfolio.