Goldman Sachs Trims CATL Price Target but Keeps Conviction Buy Status

Stock News
Oct 22

Goldman Sachs has lowered its target price for CATL (03750) H-shares to HK$777 while maintaining its "Buy" rating, according to a research report.

The investment bank noted that the company's net profit for the third quarter of 2026 came in 12% below expectations, primarily dragged down by an unfavorable product mix, the reinstatement of consumption tax, and a decline in export tax rebate rates.

Goldman Sachs cut its earnings per share forecasts for CATL from 2026 to 2028 by 4% to 7%. However, it pointed out that management believes the margin pressure is only temporary and expects unit profitability to gradually recover, mainly supported by the launch of new products and the deferred recognition of higher-value overseas energy storage system revenue.

Additionally, CATL remains on Goldman Sachs' "Conviction Buy" list.

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