Bank of America's Downgrade Sparks Massive Sell-Off in Li Auto Stock
Why Bank of America downgraded Li Auto today
In a note to clients, Bank of America lowered its per-share price target on Li Auto due to lower sales estimates and reduced net income projections, triggered by disappointing MEGA Multi-Purpose Vehicle (MVP) model orders and pricing changes on L-series models.
What's next for Li Auto stock?
Despite the downgrade, Bank of America retains its buy rating on Li Auto and sees it as a strong contender in the evolving EV market. For investors considering the stock, understanding the rationale behind the downgrade and the long-term growth potential is crucial.
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