Analysts offered contrasting takes on two major transport-sector stories Wednesday, with Deutsche Bank backing Castlelake’s pursuit of easyJet as a credible takeover threat while HSBC tempered expectations for Li Auto’s recently refreshed SUV lineup.
Deutsche Bank analyst Jaime Rowbotham said in a research note that Castlelake’s interest in easyJet “shouldn’t be taken lightly.” The investment firm already owns a 2.14% stake in the U.K. discount carrier and has a direct commercial relationship with it, Rowbotham said. He noted that Castlelake in 2023 acquired undervalued aviation assets that were suffering cyclical stress, then optimized and exited those holdings. While Castlelake’s interest in easyJet is significant, “other partners will likely have to be involved in any successful take-out to satisfy European Union ownership and control rules,” Rowbotham wrote. The analyst raised easyJet’s recommendation to hold from sell and lifted his price target to 540 pence from 340 pence.
In a separate note, HSBC Global Research analysts assessed Li Auto’s prospects after the Chinese electric-vehicle maker refreshed its L-series SUVs. The updated L9 is off to a solid start, attracting about 10,000 orders in its first two weeks, with demand skewing toward higher-end variants, the analysts said. The launch of the refreshed L8 later this month should help boost sales volumes and product mix, they added, and they expect deliveries and profitability to recover gradually in the second half of 2026.
However, HSBC warned that the refreshed SUVs might deliver a more muted boost than previously anticipated as competition in China’s premium SUV market intensifies. The analysts said they now expect Li Auto to post a net loss in 2026, citing weaker volume expectations, lower revenue assumptions, margin pressure, and a higher operating-expense ratio. HSBC kept its hold rating on the stock and cut its price target to $15.60 from $17.20.