Understanding the Market | CATL opened down over 4%, Morgan Stanley stated that the current valuation is relatively reasonable, and the lock-up period for cornerstone investors will expire next month

CATL opened down over 4%, and as of the time of writing, it has fallen 4.01% to HKD 586, with a trading volume of HKD 50.066 million. In terms of news, JP Morgan downgraded CATL's Hong Kong stock rating from "Overweight" to "Neutral," stating that the current valuation is relatively reasonable; at the same time, it raised the target price by 13% to HKD 600. Analysts wrote in the report that the lock-up period for cornerstone investors holding nearly 50% of the issued Hong Kong stocks will expire on November 19, which may bring some selling pressure and create technical price pressure above. The new target price is based on a 30 times price-to-earnings ratio for the 2026 earnings forecast