Li Auto
Beijing-based electric vehicle maker Li Auto Inc. (NASDAQ: LI) has seen its share price tumble by more than 25% over the past 12 months. The stock price reached its peak in late June and has dived by more than 43% since then. Li Auto reports quarterly results early Friday.
Since late October, the shares have added more than 57% as first the rumors and then the announcement of the government’s easing of Covid lockdowns have raised investors’ hopes for a turnaround. Li delivered 15,034 vehicles in November, an increase of 11.5% year over year and a monthly record for the company. The stock jumped nearly 19% on the day of the report.
Of 26 brokerages covering the firm, 23 have a Buy or Strong Buy rating. At a share price of around $23.10, the upside potential based on a median price target of $36.83 is 59.4%. At the high price target of $58.00, the upside potential is around 150%.
Third-quarter revenue is forecast at $1.42 billion, up 9.1% sequentially but 81.7% lower year over year. Analysts have forecast a loss per share of $0.05, compared to a loss of $0.03 per share in the prior quarter and EPS of $0.05 in the same quarter last year. For the 2022 fiscal year, current estimates call for EPS of $0.11, down 40.5, on sales of $6.72 billion, up about 58.1%.
Li Auto’s stock trades at 201.6 times expected 2022 EPS, 75.4 times estimated 2023 earnings of $0.31 and 35.1 times estimated 2024 earnings of $0.66 per share. The stock’s 52-week range is $12.52 to $41.49, and the company does not pay a dividend. Total shareholder return in the past year is negative 25.3%.
Lululemon
Lululemon Athletica Inc. (NASDAQ: LULU) shares have declined by nearly 15% over the past 12 months. The stock’s 52-week high was posted exactly one year ago. Since the beginning of December, six brokerages have raised their price targets on the stock, indicating that the brand’s customers are not about to shop for a cheaper alternative. Demand is expected to remain strong, and Lululemon is likely to continue its streak of eight consecutive quarters of double-digit sales growth. The company reports results after Thursday’s closing bell.
Of 31 brokerages covering Lululemon, 20 have a Buy or Strong Buy rating and nine more rate the stock at Hold. At a share price of $370.00, the upside potential based on a median price target of $395.00 is 6.3%. At the high price target of $542.00, the upside potential is 46.5%.
Third-quarter fiscal 2023 revenue is forecast at $1.81 billion, down 3.0% sequentially but up 24.8% year over year. Adjusted EPS are forecast at $1.96, down 10.8% sequentially and 21.0% higher year over year. For the full fiscal year ending in January, analysts expect Lululemon to report EPS of $9.91, up 27.2%, on sales of $7.93 billion, up 26.8%.
Lululemon stock trades at 37.3 times expected 2023 EPS, 32.5 times estimated 2024 earnings of $11.39 and 27.7 times estimated 2025 earnings of $13.38 per share. The stock’s 52-week range is $251.51 to $442.50. The company does not pay a dividend. Total shareholder return for the past year is negative 14.9%.
Originally published at 24/7 Wall St.
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