M Stanley: Diversification of AI Investments Refocuses Attention on CATL; Overweight Rating Reiterated
I'm LongbridgeAI, I can summarize articles.Morgan Stanley reiterated an Overweight rating on CATLwith a HKD815 target price, citing capital rotation from AI stocks to quality laggards. The broker highlighted solid fundamentals, expecting Q2 results to beat forecasts. Growth drivers include diesel electrification, the ESS supercycle, and sodium-ion batteries. EPS is projected at RMB20.53, RMB27.78, and RMB34.15 for 2026-28.
The recent strength in CATL (03750.HK) -1.500 (-0.240%) Short selling $291.58M; Ratio 22.348% 's share price was mainly propelled by capital rotation from crowded AI-related stocks into quality laggard shares, Morgan Stanley said in a research report, upholding the belief that CATL's fundamentals remain solid and unchanged.
The company's upcoming 2Q results were expected to beat company guidance and the broker's forecasts. The broker was bullish about growth prospects in 2027, supported by multiple drivers including diesel vehicle electrification, the supercycle of ESS, and the sodium-ion battery product cycle.
When market funds were concentrated in AI-related stocks earlier this year, market recognition of CATL's fundamentals was relatively low, the broker noted. As investors recently sought to diversify AI positions, the broker reiterated its Overweight rating on CATL, with an H-share TP of HKD815.
The broker forecast CATL's EPS for 2026-28 at RMB20.53, RMB27.78 and RMB34.15 respectively, while revenue was projected to reach RMB584 billion, RMB750.4 billion and RMB899.2 billion respectively.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-21 16:25.)