Morgan Stanley has released a research report indicating an expectation that the share price of Contemporary Amperex Technology Co., Ltd. (CATL) will rise relative to the industry average over the next 15 days, with a probability of approximately 70% to 80%. The firm has assigned an "Overweight" rating to the stock, with a target price of HK$490. Morgan Stanley pointed out that CATL's recent share price has experienced a pullback, making its short-term valuation more attractive. The bank believes the market is excessively concerned about the pressure of cost inflation on the company's profit margins, as these costs are ultimately transferable. CATL has previously demonstrated its ability to pass on costs during the last lithium price upcycle, and its lithium mine is expected to resume production shortly. Furthermore, the company is projected to maintain a sufficient inventory of low-cost materials through the first quarter of 2026.