Li Auto (LI) Stock Shows Potential for Growth Amid Undervaluation

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Apr 16, 2025
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  • Li Auto Inc. (LI, Financial) is trading below its fair value, with potential for substantial growth.
  • Analysts predict a 39.07% upside based on the average target price of $32.60.
  • The stock has a projected GF Value indicating possible 231.83% growth.

Li Auto Inc. (LI), a prominent name in China's burgeoning energy vehicle market, currently sees its stock trading at $23.85. This price lies beneath the estimated fair value of $26.81, presenting a potential investment opportunity. Despite recent challenges in profit margins, market analysts project a compelling 22.8% annual earnings growth for Li Auto, surpassing broader market expectations.

Wall Street Analysts' Forecast

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Analyzing insights from 25 analysts, the average price target for Li Auto Inc. (LI, Financial) stands at $32.60, with optimistic projections peaking at $45.01 and conservative estimates at $20.03. This average target predicts a notable 39.07% increase from the current stock price of $23.44. For further detailed estimate data, please visit the Li Auto Inc (LI) Forecast page.

Brokerage Recommendations

The consensus from 24 brokerage firms gives Li Auto Inc. (LI, Financial) an average recommendation of 2.2, categorizing it as "Outperform." This recommendation scale ranges from 1 (Strong Buy) to 5 (Sell), positioning Li Auto favorably among investors seeking robust stock performance.

Potential Upside with GF Value

According to GuruFocus, the estimated GF Value for Li Auto Inc. (LI, Financial) pegs the stock at $77.78 within the next year, indicating a potential upside of 231.83% from the current price of $23.44. The GF Value is calculated based on historical trading multiples, past business growth, and future performance estimates, offering a comprehensive view of the stock's fair value. More insights can be accessed on the Li Auto Inc (LI) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.