UBS Raises CATL Target Price to HK$660, Maintains "Buy" Rating

UBS has released a new research report, raising its battery sales forecasts for Contemporary Amperex Technology Co. Limited (CATL, 03750.HK) by 5% to 7% for 2024 and 2025, to 829 GWh and 1,044 GWh respectively, and simultaneously increasing its net profit expectations. Assuming an unchanged 2026 forward price-to-earnings ratio, UBS raised its target price from HK$640 to HK$660, maintaining a "Buy" rating. UBS noted that CATL is encountering multiple growth opportunities driven by its cost and technological advantages. The company’s Hungary plant is expected to benefit from European market premiums, high automation levels, and controllable labor costs, resulting in a cost curve lower than that of its German peers, with operating margins potentially on par with its domestic operations.