The target stock price has been lowered to 180 yuan, and Ningde Times has been bearish by Morgan Stanley, leaving investors confused! Intraday drop of nearly 7% due to turbulence | Ningde | Times
On June 7th, Morgan Stanley released a research report "bearish" on CATL. Morgan Stanley stated that the current decline in profit margins for battery materials companies has been largely reflected in stock prices, and CATL may face increasing risks in terms of market share and profit margins. Based on this, Morgan Stanley has downgraded CATL's rating from equal weight to low allocation, and lowered CATL's target price by approximately 16% to 180 yuan per share.
In addition, Morgan Stanley also pointed out in its report that it is expected that battery production capacity will remain surplus in the short term, making price wars inevitable. Second tier battery manufacturers may adopt more aggressive pricing strategies in the second half of this year to gain market share, and CATL's market share may further shrink.
In April of this year, according to data released by SNE Research, CATL's market share in the domestic market decreased to 46%, and its market share in the domestic market except for BYD also shrank to 59%. Morgan Stanley stated that we have further lowered our forecast for CATL's domestic market share, predicting that its market share in 2023 will decrease from 55% to 47%, while its long-term market share will decrease from 45% to 40%. On a global scale, Ningde Times has lowered its long-term market share from 30% to 25%, which is lower than the market's generally believed over 30%.
Affected by this news, the stock price of Ningde Times continued to decline at the beginning of trading today, with a sharp drop of nearly 7% during the day. As of the afternoon close on June 7th, it has fallen by 5.61% to 206.98 yuan, with a total market value of 909.9 billion yuan.
Recently, there have been constant controversies in the Ningde era. According to the US technology media The Verge on June 3rd, the Model 3 imported from China, as updated on Tesla's US official website, is eligible for a $7500 tax reduction in the United States. Some views point out that the imported Tesla Model 3 model receives full subsidies, which means that its "battery components" and "key raw materials" comply with the production regulations of the US Inflation Reduction Act of 2022. Therefore, Tesla Model 3 will no longer use CATL's lithium iron phosphate batteries in the North American market.
![The target stock price has been lowered to 180 yuan, and Ningde Times has been bearish by Morgan Stanley, leaving investors confused! Intraday drop of nearly 7% due to turbulence | Ningde | Times](https://a5qu.com/upload/images/bdcd800db62089b2ae92ddc7934ffc7a.jpg)
On June 5th, the stock price of Ningde Times fell 3.78% in response. On June 6th, the stock price of Ningde Times continued to decline. Since the beginning of this week, the total market value of Ningde Times has shrunk by over 90 billion yuan.
On the afternoon of June 5th, CATL refuted rumors on the investor interaction platform that the news that CATL does not supply Tesla North America is not true, and that CATL's strategic partnership with customers has not changed and will continue to deepen and improve. In addition, CATL batteries have not been seized by US customs.
Although CATL has debunked the rumors, Morgan Stanley pointed out in a research report that geopolitical factors may delay the global expansion plans of Chinese battery manufacturers. Due to the new tax incentives for electric vehicles under the IRA bill, it is currently unlikely that power batteries will be exported from China to the United States.
As of the time of publication, Ningde Times has not responded to the above news.