Zhi Tong Cai Jing·2025-08-29 07:27Core Viewpoint - Bank of America Securities downgraded Li Auto-W (02015) from "Buy" to "Neutral" due to the company's forecast of declining sales and gross margin for Q3 [1] Sales and Financial Forecast - Management estimates Q3 delivery volume to be between 90,000 to 95,000 units, representing a year-over-year decrease of 38% to 41% [1] - Gross margin is projected to be 19% for Q3 [1] Target Price Adjustments - Bank of America Securities lowered the target price for Li Auto's US ADR (LI.US) from $31 to $26 and for its Hong Kong stock from HKD 121 to HKD 101, primarily based on revised sales and free cash flow expectations [1] Competitive Landscape - The latest guidance reflects increased market competition, which is expected to hinder Li Auto's sales growth prospects [1] Long-term Projections - Sales forecasts for Li Auto for fiscal years 2025 to 2027 have been reduced by 12%, 12%, and 8% respectively [1] - Operating expenses as a percentage of sales have been increased by 2.1%, 2.1%, and 1.5 percentage points for the same fiscal years [1] - Non-GAAP profit expectations have been lowered by 38%, 33%, and 31% for the fiscal years 2025 to 2027 [1]