Li Auto price target lowered to $53 from $65 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Li Auto to $53 from $65 and keeps an Overweight rating on the shares. The price target change reflects Li Auto’s strategic product pipeline changes, and Morgan Stanley says Q2 may be critical for the company to reassess order and margin trajectories into 2H, when volume, product mix, and opex savings will play parts, the analyst tells investors in a research note. The stock’s selloff to $21 has priced in a more pessimistic bias, but the 50%+ share price correction since its prior peak late in February should have more than discounted the fundamental disappointment, Morgan Stanley argues.