Li Auto Shares Rally After Nomura Calls Them a Buy By

© Reuters. — Li Auto (NASDAQ:) shares have rallied Thursday after Nomura analyst Martin Heung initiated coverage with a buy rating and $43.40 price target.

Heung’s price target represents a potential 55% upside to Li Auto’s share price, which started the day at $29 and is currently up over 2%.

The Nomura analyst described the Chinese electric vehicle company as being “renowned as one of the star domestic EV start-ups,” alongside NIO (NYSE:) and XPeng (NYSE:).

According to Heung, Li has differentiated itself from the pack with its extended-range-electric-vehicle (EREV), which he believes will “allow more skeptical car buyers to dip their toes in the EV world” without the need to worry about charging.

Heung believes that EREV’s duel-power-sourced vehicles reduce common problems such as range anxiety and long charging queues. He also feels they allow OEMs such as Li to unlock regional markets with little or no recharging infrastructure.

Li’s September delivery update revealed it delivered 7,094 Li ONEs in September, up 102.5% year over year. Additionally, the company’s deliveries for the third quarter were 25,116, up 190.0% year over year.

Lucid Motors (NASDAQ:) recently broke the record for range, smashing past the 500-mile mark with its Lucid Air luxury electric sports sedan.

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