Morgan Stanley downgraded CATL’s rating from equal-weight to underweight, saying the Chinese battery manufacturer, faces increasing risks in market share and profit margin, despite reporting that most of the headwinds facing battery material companies have already been reflected in their stock prices. In a report, analysts including Jack Lu, predict an ongoing surplus of battery production capacity will likely lead to price wars. He also expects second-tier battery manufacturers to adopt more aggressive pricing strategies to gain market share. Morgan Stanley reduced CATL’s target price by 16% to RMB 180. [CLS, in Chinese]