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Investing.com - Contemporary Amperex Technology Co Ltd (3750:HK) received a buy rating from UBS on Thursday as the investment bank initiated coverage with a price target of HK$390.00.
UBS highlighted CATL’s position as the world’s largest battery manufacturer, commanding a 37.9% global market share in EV batteries and 36.5% in ESS batteries in 2024, according to data from SNE Research.
The investment bank identified several competitive advantages for CATL, including its leading research and development scale and capabilities, comprehensive product offerings, diversified client base, and solid track record in the battery industry.
UBS forecasts CATL will maintain a stable unit profit of Rmb107/kWh while achieving a 20% volume compound annual growth rate over the next five years as global demand for battery technology continues to expand.
The HK$390 price target is based on a 20.5x price-to-earnings multiple for 2026 estimated earnings, which UBS notes is in line with the market capitalization weighted average of CATL’s peer group.
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