Li Auto’s weaker growth outlook has Bank of America moving to the sidelines on the stock. BofA downgraded Li Auto to neutral from buy on Friday and trimmed its price target to $26 per share from $31. The firm’s forecast calls for about 12% upside from Thursday’s close. LI YTD mountain Li Auto stock in 2025. Analyst Ming Hsun Lee pointed to lower growth expectations after the company issued lackluster guidance for vehicle deliveries in the current quarter. “We believe the latest guidance echoes the intensified market competition, which will weigh on Li’s sales growth outlook,” the analyst said. “We cut 2025/26/27E volume sales by 12%/12%/8%, and lift OPEX to sales by 2.1/2.1/1.5ppt.” Competition has also bee stiffening, the analyst added, which could be an additional tailwind for growth. “Li Auto is very profitable in the family use SUV segment but in recently months more new products have been launched in the segment: Xiaomi YU7, AITO’s M8/M7, and Onvo L90,” the analyst said. “Li may consider stepping into other segments like sedans or be more aggressive in oversea markets to resume its fast growth path, as China’s EV market growth may slow down soon due to its high base.” Shares have ticked down about 3% in 2025. Despite the downgrade, most analysts remain bullish on the stock. Of the 28 who cover Li Auto, 19 rate it a buy or strong buy, according to LSEG. The average price target also signals 38% upside.
This Chinese electric vehicle stock is running out of steam as competition heats up, says Bank of America
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