Morgan Stanley analyst Jack Lu, CFA has maintained their bullish stance on 3750 stock, giving a Buy rating on April 27.
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Jack Lu, CFA has given his Buy rating due to a combination of factors tied to CATL’s sodium‑ion (Naxtra) strategy and its long‑term growth potential. He argues that the market is overly focused on the modest short‑term earnings impact and is missing the larger opportunity from sodium‑ion unlocking a sizable new addressable market, particularly as commercialization scales and volume growth accelerates.
He highlights that Naxtra should generate incremental demand in entry‑level passenger vehicles, light trucks, and energy storage, rather than merely replacing CATL’s existing LFP products, thereby driving new volumes and market share gains. In addition, he underscores the strategic value of sodium‑ion in enhancing China’s energy and mineral security, anticipating supportive government policies that could accelerate supply‑chain build‑out and underpin CATL’s medium‑term earnings and valuation upside.
In another report released on April 27, UBS also reiterated a Buy rating on the stock with a HK$820.00 price target.