Li Auto price target lowered to $35 from $42 at HSBC

HSBC analyst Yuqian Ding lowered the firm’s price target on Li Auto to $35 from $42 and keeps a Buy rating on the shares. The company reported "solid" sales in January despite low seasonality and COVID-related disruption, the analyst tells investors in a research note. The firm believes Li’s new model could boost volumes, but factors in potential cannibalization and tougher competition into its estimates. HSBC attributes the stock price correction to demand concerns and higher competition.