JPMorgan has revised its rating on CATL (03750) from "Neutral" to "Overweight," citing improved valuation prospects. The firm raised its H-share target price from HK$575 to HK$650, applying a 29x P/E ratio—a 15% premium over its A-share valuation.

For CATL's A-shares (300750.SZ), the target price was lifted from RMB480 to RMB520, based on a 25x P/E multiple. The bank noted that CATL's A-shares currently offer the most attractive valuation among global battery stocks.

Since mid-September, market earnings expectations for CATL have risen by approximately 10%, aligning with JPMorgan's earlier projections. The upgrade reflects optimism toward global ESS battery demand by 2026, alongside long-term growth drivers such as automation, digitalization, and data-driven demand.

Consequently, JPMorgan raised its 2026 earnings forecast for CATL by 10% to RMB94 billion, roughly 10% above consensus estimates.