Lee Automobile Co., Ltd. Li Stocks fell slightly on Monday morning after the Chinese electric car maker reported better first-quarter earnings, but Bank of America analyst Ming Hsun Lee said Li shares had a lot to lose. You said there was an increase.
BofA’s Take On Lee Auto: Hsun Lee reiterated Li’s buy rating and $34 price target on Monday, raising its 2023 EPS estimate to a gain of 7 cents per share from a loss of $1.12. He said the company’s strong model pipeline, impressive free his cash flow generation, and better margin management than his EV peers in China make the stock an attractive long-term investment. I was.
“We are revising our 2023/24E volume forecast +1%/+1% to reflect our positive volume view, which we now expect to be profitable on a GAAP basis in 2023,” said Lee. says Mr.
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Li expects to ship 52,000 to 55,000 units in the first quarter. In early February, Li launched the L7, his five-passenger extended-range SUV, which is medium to large. Once all three versions of his new model are available, the company expects to reach monthly vehicle shipments of 30,000 by the end of the second quarter. Li’s management also expects to achieve his 20% market share in China’s premium EV market this year.
Lee said the timing of the launch of Lee’s new battery EV model is likely to depend on the exact timing. Qualcomm Inc. Qucom We will probably release the 8295 chip in late 2023.
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Benzinga take: Rising interest rates are putting even more pressure on unprofitable EV startups to demonstrate viable and scalable business models in the years to come. Li looks like it could take a big financial step in 2023 if it can complete its first year of GAAP profitability.
Photo courtesy of Lee Automobile.