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<Research>CLSA: Current Valuation of CATL (03750.HK) Reflects Most Mkt Concerns
Recommend 20 Positive 21 Negative 12 |
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CATL (03750.HK) is facing several headwinds entering 2026 that have raised investor concerns about its growth prospects, including the slowdown in China's EV sales, rising lithium prices and the reduction of export VAT rebates on batteries, CLSA released a research report saying. CATL's A-/ H-shares are currently trading at an estimated 2026 PE ratio of 17x/ 22x, which CLSA believed already reflects most of the market's concerns. Considering the broker's forecasts of a 31% CAGR in EPS for 2025-2027, the risk-reward is attractive. CATL's A-shares had an average PE ratio of 19x during 2022-2025 when the battery industry was in a downcycle. With a new upcycle driven by structural growth in energy storage batteries about to begin, CLSA believed that CATL's valuation should be re-rated to a level above its historical average PE ratio of 19x. Therefore, the broker reiterated rating at High Conviction Outperform on CATL's A-/ H-shares, and kept its target prices at RMB685/ $500. AASTOCKS Financial News Website: www.aastocks.com |
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