UBS: Li Auto L9 refresh imminent catalyzes revaluation, reiterates "Buy"

UBS published a research report stating that Li Auto-W (02015.HK) currently has an attractive valuation level. Its trading price has been below this level for over 95% of the time since its listing, and net cash accounts for about two-thirds of its market value. As for catalysts, the flagship SUV L9 will be refreshed and launched in the second quarter, which is expected to drive growth acceleration from a low base in 2025. Despite facing challenges from rising commodity costs, the company is expected to be more resilient than most peers due to its high-end positioning and profit buffer. UBS believes that now is the right time to refocus on this stock.

Li Auto released the new generation L9 last Friday (6th), with plans to launch in the second quarter. The flagship L9 Livis is priced at 559,800 yuan. UBS believes that market sentiment is expected to gradually improve from now until the official launch in the second quarter, which will help enhance investor visibility on the updates of other models.

The report pointed out that Li Auto's current trading valuation is below this level for over 95% of the time since its listing, reflecting a rather pessimistic market sentiment. With the L9 launch approaching, the bank believes that dawn is breaking. Based on its attractive risk-reward profile, UBS reiterated its "Buy" rating, with a target price of $30 for Li Auto (LI.US) in the U.S. stock market