UBS: Lowering Ganfeng Lithium's (01772) target price to HK$44.28 to reaffirm “buy” rating

Zhitongcaijing · 1d ago

The Zhitong Finance App learned that UBS released a research report stating that it has lowered the target price of Ganfeng Lithium (01772) from HK$106.86 to HK$44.28, reaffirming the “buy” rating. Following the bank's global commodities team lowering the global lithium price assumption, UBS further lowered the 2027 China lithium price assumption from 200,000 yuan per ton to 120,000 yuan per ton, while also lowering the profit forecast and target price for China's lithium industry stocks.

The bank said that the benchmark scenario assumes a 15% and 22% year-on-year increase in demand and supply, respectively, and the lithium price forecast is still higher than the 100,000 yuan per ton reflected by the market. The bank believes that the current market may be overly concerned about the potential risk of de-stocking batteries in China's battery energy storage system, while ignoring the risk that anti-corruption investigations in Jiangxi may lead to a decline in supply.