Goldman Sachs: Remains cautious about the sustainable rise in battery prices and prefers CATL and Guoxuan High-tech
Goldman Sachs published a report stating that despite the short-term tightness in the battery market, it remains cautious about the continued rise in battery prices. The bank's sensitivity analysis shows that every 10% price increase can bring a 30% to 60% profit increase next year. Guoxuan High-tech, Sinotruk, and EVE Energy are relatively price sensitive. The bank believes that the recent rise in battery stocks has reflected the expectation of a 2% to 5% increase in average selling prices next year. The bank prefers CATL and Guoxuan High-tech, believing that both benefit from the cyclical recovery and attractive valuations. The bank has a target price of 369 yuan for CATL's A shares, with a "buy" rating, and a target price of 470 Hong Kong dollars for its H shares, with a "neutral" rating; the target price for Guoxuan High-tech is 54.8 yuan, with a "buy" rating.