Morgan Stanley issued a research report stating that it has raised its EBITDA forecasts for Contemporary Amperex Technology Co., Limited (03750). The firm increased the target price for CATL's A-shares (300750.SZ) from RMB 425 to RMB 490, reaffirming its "Overweight" rating. For H-shares, the target price was raised from HK$465 to HK$585, while the rating was downgraded from "Overweight" to "In-line". The bank has also shifted its preferred stock selection from H-shares to A-shares.

The firm expects China's energy storage industry to transition from low-quality to high-quality development over the next five years. Compared to smaller battery manufacturers, CATL's products are expected to deliver a 7 to 15 percentage point premium in return on investment for energy storage projects. Morgan Stanley anticipates that CATL's market share in China's domestic energy storage sector will increase from the current approximately 10% to over 50% within the next three years.