The analyst rating for LI AUTO was lowered from Buy to Neutral due to several factors highlighted in the report by Goldman Sachs. The company's 4Q25 results aligned with expectations, but the sales volume and gross margin guidance for 1Q26 and 2026 were below expectations. Consequently, Goldman Sachs trimmed its forecasts for 2026-28, reducing sales volume forecasts by 5-22% and net profit forecasts by 21-34%. The broker anticipates that LI AUTO will experience two consecutive quarters of deeper net profit losses, sluggish sales growth, and pressure on vehicle gross margins, leading to a cut in the target price from HKD93 to HKD74.
