Morgan Stanley, in a research report published on October 9, stated that investors' current earnings expectations for Chinese battery giant CATL are overly pessimistic, and the market is underestimating its cross-cycle resilience. The firm maintained an "Overweight" rating for CATL's A-shares and set a target price of RMB 500.

The report emphasized that the market's focus is excessively concentrated on the Chinese passenger vehicle market, overlooking the vast revenue exposure from the electrification of Chinese commercial vehicles, the re-acceleration of EV penetration in Europe, and the inflection point in EV demand in other global markets outside the US. Analysts believe that CATL's technological advantages can support a premium of up to RMB 0.24/Wh, significantly higher than the current actual profit premium of RMB 0.09/Wh, indicating a solid earnings moat. Even if battery net profit falls to RMB 0.08/Wh or lower next year, it would accelerate industry consolidation, representing a "buy-the-dip scenario" for CATL shares.

The report also pointed out that CATL is undergoing a structural transformation in its energy storage business, with global demand expected to grow by approximately 30% by 2027. Furthermore, "Powered by CATL" has become a global consumer brand franchise, with its pricing and profit premium increasingly determined by end-user preferences rather than OEM procurement decisions.