JP Morgan said battery shares have materially underperformed in recent months as
market focus has shifted from demand to profitability. The bank now rates all
second-tier battery makers and battery materials and equipment coverage Neutral
or Underweight and has cut earnings across the battery supply chain. JP Morgan
still sees global EV and ESS battery demand rising 20–25% by 2027—above
consensus—but warned profitability could deteriorate faster than expected and
that profits are being reallocated across the EV supply chain. Price-target
cuts: CATL (03750.HK) HKD725->HKD500; 03931.HK HKD40->HKD17; 00470.HK
HKD45->HKD22. All three stocks were downgraded from Overweight to Neutral.
