HSBC initiates coverage on CATL stock with Buy rating
Investing.com
Published Jun 11, 2025 09:35AM ET
HSBC initiated coverage on Contemporary Amperex Technology Co Ltd (3750:HK) with a Buy rating and a price target of HK$359.00, according to a research note released Wednesday.
The investment bank maintained its Buy rating on CATL's A-shares with an unchanged target price of RMB322.00, representing a 29% upside potential from current levels. For the newly covered H-shares, the price target of HK$359.00 indicates an 18% upside potential.
HSBC used a discounted cash flow (DCF) approach to value CATL, with the H-share target price derived by applying an end-2025 RMB/HKD exchange rate of 1.06 and a 5% H-to-A share premium to the A-share target price.
The firm's bullish stance is based on what it describes as a "constructive view" of CATL's robust earnings outlook and the company's overseas expansion plans. The research note indicated that HSBC's estimate changes for the company were minor.
CATL, one of the world's largest manufacturers of electric vehicle batteries, has been expanding its global footprint as demand for EV batteries continues to grow across international markets.
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