CLSA has upgraded its rating on CATL (03750) from "Outperform" to "High Conviction Outperform," while maintaining its target price of HK$685. The adjustment follows a 9% decline in the stock price over the past two days after the H-share IPO lock-up period ended, narrowing the H-A premium to 15%.

Based on 22x and 18x 2026/2027 fiscal year P/E multiples, CATL's H-share valuation appears more attractive relative to its projected 31% earnings CAGR from 2025 to 2027.

CLSA also reaffirmed its "High Conviction Outperform" rating and RMB500 target price for CATL's A-shares (300750.SZ).