CATL's Buyback Hits 19.37 Million A-Shares as Morgan Stanley Slashes Target by 44.7%
Published on 11/01/2026 at 13:21 | Editorial boerse-global.de
CATL has now repurchased a total of 19.37 million A-shares, the battery maker disclosed in a Hong Kong exchange filing, with the aggregate outlay reaching RMB5.31 billion. The latest tranche — 233,800 A-shares bought on Thursday for RMB53.6726 million — extends a buyback programme that has gathered pace since disappointing quarterly figures first weighed on the company's Hong Kong-listed stock.
The earnings miss has prompted a sharp rethink among sell-side analysts. Morgan Stanley downgraded CATL's H-shares to "In-Line" on Tuesday, according to media reports, while cutting its price target by 44.7% to HK$390. The move came hard on the heels of the third-quarter release.
Profit Growth Falls Well Short of Consensus
For the third quarter of 2026, CATL reported an unaudited net profit of RMB21.2 billion, up 14.5% year on year. Analysts had been looking for growth of 41.2%, media reports indicated. Revenue for the same period climbed 58.6% to RMB165.2 billion — a figure that also fell short of forecasts.
Should investors sell immediately? Or is it worth buying CATL?
Reuters described the profit expansion as the weakest in nearly two years, pointing to fiercer competition in the battery market and slower growth in Chinese vehicle sales. A lower gross margin, an unfavourable product mix and higher tax costs added to concerns about profitability, with the revenue shortfall compounding the picture.
UOB Kay Hian had already reaffirmed its buy rating on CATL on 22 October while trimming its target for the A-shares to RMB470.00 from RMB585.00. The brokerage also lowered its net profit forecasts for 2026 through 2028 by 5%, 10% and 16% respectively, anticipating that CATL will absorb part of the tax increases.
Product Pipeline Presses Ahead
On the technology front, CATL is staying the course. The company told investors on Tuesday that research into all-solid-state batteries is continuing, with small-series production targeted for 2027, according to specialist media.
Two days earlier, on 20 October, CATL unveiled a new battery for heavy commercial vehicles alongside a battery-swapping solution that pairs exchangeable packs with fixed on-board battery systems. The company also announced plans to expand its battery-swap network.
Ad
CATL Stock: New Analysis - 1 November
Fresh CATL information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
