Morgan Stanley has released a research report stating that Contemporary Amperex Technology Co., Ltd. (CATL) has established a self-reinforcing cycle through continuous innovation, rather than passively responding to demand fluctuations. The firm raised its forecast for CATL's average annual compound profit growth rate between 2026 and 2028 from 25% to 30%. It upgraded the H-shares rating to "Overweight" and designated the stock as a top pick, increasing the target price by 17% to HK$815. Concurrently, Morgan Stanley raised the target price for CATL's A-shares by 6% to RMB 595. The report emphasized that factors such as raw material price volatility, shifts in demand, and geopolitical tensions have not disrupted the company's structural growth trajectory. CATL is entering a new product cycle, with two next-generation battery technologies—sodium-ion batteries and condensed-state batteries—nearing commercialization. Both products are expected to enter mass production rapidly, driving accelerated growth and helping maintain market share over the next three years.