According to Goldman Sachs, Chinese automaker Li Auto is ramping up the pace of product launches, making it a ripe investment opportunity. Analyst Tina Hou initiated coverage on Li Auto with a “buy” rating and a price target of $52.90. This suggests that the stock price could rise by 52.9% over the next 12 months. The new rating comes as the company’s monthly vehicle deliveries soar to record highs and it prepares to launch new all-electric models in the coming months. “We look forward to the competitive position of BEVs.” [battery electric vehicle] “The deepening of models and sales network will help fuel new growth for Li Auto. Continued economies of scale and operating leverage will allow Li Auto to deliver top-class free cash,” Hou said in a note on Wednesday. “We expect flow generation to deliver the fastest earnings growth.” Hu said Li Auto is a “major pure NEV player” with 5% of China’s NEV (new energy vehicle) market share, positioning the company for sustainable growth in a highly competitive market. said that it can be done. The company is gaining popularity for cars with fuel tanks to charge batteries and extend range, fueling China’s burgeoning electric vehicle market. There were several positive catalysts behind Goldman’s upgrade of Li Auto, including the launch of the company’s new models and the development of its City NOA program (advanced driver assistance system). Urban drivers, and he will also be announcing the company’s quarterly results, which will be released in late February. Li Automobile announced on Sunday that it plans to launch and begin deliveries of its “Mega” multi-purpose electric vehicle on March 1st. The company has already started taking pre-orders for the vehicle (which will be the first model produced at the Beijing plant) in China at the planned price. The amount was less than 600,000 yuan ($84,533.24), Reuters reported. During Lee Auto’s third quarter earnings call in early November, company management said Lee Auto plans to launch four all-new models in 2024. This includes a large SUV aimed at young families scheduled to go on sale in the first half of this year. Three BEV models will appear in the second half. This will bring his eight models to Li Auto’s portfolio by the end of this year, Goldman noted. In a delivery update released on Sunday, Li Auto said it delivered more than 50,000 vehicles in December, bringing the total to 376,030 vehicles in 2023, an increase of about 182% year-on-year. LI 1Y Mountain Lee Auto Inventory. “We expect Lee Auto to have the most aggressive new model pipeline and store expansion over the next two years…Lee Auto’s next BEV models will be “We will be more competitive than our peers in terms of this,” Hou wrote. He noted that the company’s BEV models are expected to contribute 34% of revenue by the end of 2025, and the launch of new models could also drive further sales growth. Downside risks for Li Auto include deterioration in market demand and intensifying competition in the EV market, which could weigh on Li Auto’s sales volume, profit margin, and cash flow, Hou said. Stated. Hou also gave Chinese EV startup Nio a neutral review, saying the company has certain brand recognition advantages “as an early entrant.” However, Nio is losing market share in his NEV market in China, and Hou said its growth rate remains low as the automaker has a more mature product portfolio compared to its peers. He pointed out that it is possible.