Strategic Shift to Sodium-Ion Batteries: CATL is transitioning from lithium batteries to sodium-ion batteries, which are seen as more cost-effective, according to a Morgan Stanley report.
Market Penetration and Applications: Sodium-ion batteries are expected to initially penetrate the light truck and passenger vehicle markets, particularly in small and micro segments, and have potential in energy storage systems as a replacement for lithium iron phosphate batteries.
Positive Outlook from Morgan Stanley: The broker rated CATL's A-shares as Overweight with a target price of RMB490, highlighting the economic viability of sodium-ion technology.
Short Selling Activity: CATL has experienced significant short selling activity, with a ratio of 30.080% and a total of $759.67 million in short sales.
Wall Street analysts forecast 03750 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 03750 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 03750 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 03750 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 472.200
Low
Averages
High
Current: 472.200
Low
Averages
High
CLSA
CLSA
maintain
RMB685 / $500
2026-01-19
New
Reason
CLSA
CLSA
Price Target
RMB685 / $500
AI Analysis
2026-01-19
New
maintain
Reason
The analyst rating for CATL (03750.HK) is "High Conviction Outperform," as reiterated by CLSA. The reasons for this rating include:
1. Market Concerns Reflected in Valuation: CATL's current estimated PE ratios of 17x for A-shares and 22x for H-shares already account for most of the market's concerns regarding growth prospects, such as the slowdown in China's EV sales, rising lithium prices, and reduced export VAT rebates on batteries.
2. Strong Earnings Growth Forecast: CLSA forecasts a 31% compound annual growth rate (CAGR) in earnings per share (EPS) for 2025-2027, suggesting that the company's growth potential remains strong despite current headwinds.
3. Valuation Re-rating Potential: Historically, CATL's A-shares had an average PE ratio of 19x during a downcycle in the battery industry. With a new upcycle anticipated due to structural growth in energy storage batteries, CLSA believes CATL's valuation should be re-rated to exceed this historical average.
4. Attractive Risk-Reward Profile: Given the expected earnings growth and the current valuation, CLSA considers the risk-reward profile for CATL to be attractive, supporting their positive outlook on the stock.
Overall, these factors contribute to CLSA's positive rating and target prices of RMB685 for A-shares and $500 for H-shares.
Citi
maintain
2026-01-06
Reason
Citi
Price Target
2026-01-06
maintain
Reason
Citi's analyst rating is based on the belief that the battery price uptrend will continue this year, despite relatively weak demand in China's electric vehicle industry. The firm highlights significantly raised expectations for energy storage systems, which have positively influenced the stock performance of related shares. Citi specifically identifies CATL as a top pick, citing its strong risk-reward ratio following price increases in various segments of the industry chain and the lithium sector. The outlook is expected to improve after the Lunar New Year, although there is caution regarding short-term rises in lithium prices.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for 03750
Unlock Now
JPMorgan
JPMorgan
Overweight
maintain
RMB180
2026-01-06
Reason
JPMorgan
JPMorgan
Price Target
RMB180
2026-01-06
maintain
Overweight
Reason
The analyst rating for SIEYUAN ELEC and CATL is based on their recent collaboration on energy storage, which is expected to significantly expand SIEYUAN ELEC's energy storage system business. JPMorgan believes that if the collaboration's output is fully realized, it could generate approximately RMB20 billion in annual revenue. This positive outlook has led JPMorgan to set a target price of RMB180 for SIEYUAN ELEC and target prices of $650/RMB520 for CATL's H-/A-shares, all rated at Overweight.
Morgan Stanley
Morgan Stanley
maintain
RMB490
2025-12-31
Reason
Morgan Stanley
Morgan Stanley
Price Target
RMB490
2025-12-31
maintain
Reason
The analyst rating from Morgan Stanley is based on the expectation that the continuation of electric passenger vehicle (PV) subsidies in China will support high single-digit growth for the electric vehicle battery industry in 2026. Additionally, the anticipated strong performance of electric trucks and energy storage systems is expected to enhance industry profitability. Morgan Stanley believes that if strong demand leads to rising battery material prices, CATL will be able to manage cost pressures through pricing strategies. Consequently, they have rated CATL's A-shares as their industry top pick with an Overweight rating and a target price of RMB490.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
