Li Auto price target raised to $30 from $23 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Li Auto (LI) to $30 from $23 and keeps an Overweight rating on the shares. Tesla’s (TSLA) price cuts in China triggered broader price competition, which, together with weaker year-to-date sales post-stimulus, has pressured China’s EV names’ first half sales and margin. The firm has cut its earnings forecasts and adjusted price targets for the China "EV trio" to factor in a more challenging operating environment, but reiterates its Overweight ratings on the trio of Nio (NIO), XPeng (XPEV) and Li for their valuation, balance sheet strength, speed of innovation and model iteration.