Barclays downgrades Li Auto to Equal Weight on heightened competition

Barclays downgraded Li Auto to Equal Weight from Overweight with a price target of $25, down from $39. The analyst says the “fundamental issue here is competition” from Huawei and BYD. Industry sales data show that sales of Li’s L series have been soft in recent weeks, as the company cut prices across its entire L series of SUVs and the Mega model for the first time in its history, the analyst tells investors in a research note. The firm notes this follows disappointing initial sales of the Mega model, which was “the first operational misstep” from the management.