Analysts at Morgan Stanley have indicated in a Tuesday report that CATL (Contemporary Amperex Technology Co.,Ltd.), set to release its second-quarter results this Friday, is likely to surpass both its own guidance and the bank's projections, which were for net profits of RMB 22 billion and RMB 23 billion respectively. The company's forward-looking guidance is also expected to be robust.

Morgan Stanley analysts Jack Lu and Kaylee Xu noted in the report that many investors they recently engaged with expressed a desire to moderately diversify away from the overly crowded AI sector. Their aim is to reallocate towards high-quality companies with solid fundamentals that have previously underperformed.

The growth outlook for CATL remains strong for the coming year. Multiple drivers, including the electrification of diesel vehicles, a super-cycle in energy storage, and the commencement of the sodium-ion battery product cycle, are anticipated to continue supporting the company's growth trajectory.

The bank maintains its 'Overweight' rating on CATL.

CATL's Hong Kong-listed shares opened 0.9% higher on Wednesday, having risen more than 4% so far this week. Its A-shares opened 0.2% higher on Wednesday, with a gain exceeding 6% for the week.