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2025-08-01 11:34:38
[JPMorgan Chase downgraded CATL's rating to neutral due to valuation considerations and raised its target price to HK$415] The bank raised its earnings forecast for CATL (03750.HK) by 5% to reflect high expectations for performance, and raised its H-share target price from HK$400 to HK$415, equivalent to a combined price-to-earnings ratio of 20 times for 2026 and 2027. Considering that the H-shares have risen 62% since their listing, the valuation has become reasonable (the H-shares are equivalent to a price-to-earnings ratio of 26.9 times and 22 times for this year and next year respectively), so the rating was downgraded from overweight to neutral, emphasizing that the downgrade was purely due to valuation considerations.
