In the midst of market tumult, Deutsche Bank stands firm, signaling a silver lining for investors eyeing Li Auto (LI).
The recent sell-off has positioned Li Auto as an enticing prospect, with shares declining approximately 28% since late November, a performance notably worse than the KraneShares CSI China Internet ETF, which witnessed a 14% drop during the same period.
The company's slide mirrors broader concerns surrounding Chinese stocks, compounded by apprehensions about consumer sentiment. Against the backdrop of a more than 6% decline year-to-date in the Shanghai Composite, Li Auto's trajectory underscores the prevailing unease among investors.
Despite the downward trend, Yu remains relatively optimistic, albeit with a conservative stance compared to the consensus on the Street. While maintaining a buy rating, the average analyst's price target reflects a staggering upside of nearly 83%, according to FactSet.
Li Auto's shares saw an early surge of more than 6% in Tuesday's trading session, marking a notable rebound amidst a challenging landscape. As the market grapples with uncertainty, Yu's bullish outlook on Li Auto hints at a potential beacon of hope amid the volatility.
As investors navigate through turbulent waters, Yu's call serves as a beacon of insight, shedding light on the nuanced dynamics shaping the automotive sector's trajectory amidst broader market upheaval.
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