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Investing.com - Goldman Sachs has downgraded Contemporary Amperex Technology Co Ltd (HK:3750) from Buy to Neutral while raising its price target to HK$436.00 from HK$411.00.
The downgrade follows Goldman Sachs’ recalibration of earnings estimates after CATL’s first-half 2025 results. Analyst Eric Shen lowered 2025-2027 earnings projections by 1%, 5%, and 3%, respectively, primarily due to reduced battery unit gross profit assumptions.
For CATL’s A-shares, Goldman Sachs increased its target price to RMB 328 from RMB 323, refreshing the near-term price-to-earnings ratio to 16.5x from 15.6x to reflect current market conditions.
The firm applied a 20% H-share premium to the A-share for its Hong Kong-listed shares, up from the previous one-month average premium of 15%. Goldman Sachs attributes this premium to CATL’s relatively small supply of H-shares, which represent only 3.4% of the company’s total shares.
Since being added to Goldman Sachs’ Buy list on June 24, 2025, CATL’s H-shares have gained 41%, significantly outperforming the Hang Seng Index’s 4% increase during the same period.
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