Li Auto price target lowered to $65 from $74 at Morgan Stanley

Morgan Stanley analyst Tim Hsiao lowered the firm’s price target on Li Auto to $65 from $74 and keeps an Overweight rating on the shares. Following the 34% month-to-date stock correction in the wake of Li Auto’s guidance cut and “the acute shift in sentiment from just a few weeks ago,” the firm has started hearing divergent feedback from investors on whether to buy on weakness or sell into the weakness, the analyst says. The firm cut its estimates to reflect the latest corporate developments, but views the stock’s selloff to $30 as having “priced in more pessimistic bias vs. the fundamentals of the business today,” the analyst tells investors.