Morgan Stanley wrote in a report its belief that Li Auto (LI.US) 's share price will rise in 15 days, with a 70% to 80% chance. The broker gave the company an Overweight rating and a target price of US$65.
The report pointed out that Li Auto's shares have become more attractive in terms of valuation after the recent adjustment. In addition, the Chinese Ministry of Commerce announced on 26 April that it will introduce a policy to encourage individual consumers to trade in their old vehicles for new ones. Consumers purchasing eligible ICEV or NEV models will be given a subsidy ranging from RMB7,000 to RMB10,000, which is believed to be favourable to the auto industry.
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