Morgan Stanley: The target price for Contemporary Amperex Technology (03750) is 490 Hong Kong dollars with a "overweight" rating.

Morgan Stanley released a research report stating that it is expected that the stock price of Contemporary Amperex Technology (03750) will increase relative to the industry average in the next 15 days, with a probability of around 70% to 80%. The stock is rated as "hold" with a target price of HK$490. Morgan Stanley pointed out that the recent pullback in the stock price of Contemporary Amperex Technology has made the short-term valuation more attractive. The bank believes that the market is overly concerned about the pressure of cost inflation on the company's profit margin, but these costs will eventually be passed on. Contemporary Amperex Technology has proven its ability to pass on costs during the previous lithium price upcycle, and it is expected that its lithium mines will resume production in the short term. At the same time, the company still has sufficient low-cost inventory for the first quarter of 2026.