UBS: Lowers Ganfeng Lithium Group (01772) target price to HKD 44.28, reiterates "Buy" rating.

UBS released a research report stating that it has lowered the target price of Ganfeng Lithium Group (01772) from HKD 106.86 to HKD 44.28, while reiterating its "Buy" rating. After the bank's global commodities team cut its global lithium price assumptions, UBS further lowered its 2027 China lithium price assumption from RMB 200,000 per tonne to RMB 120,000 per tonne, and also cut its earnings forecasts and target prices for Chinese lithium stocks. The bank said its base-case scenario assumes demand and supply growth of 15% and 22% year-on-year, respectively, and its lithium price forecast remains above the RMB 100,000 per tonne reflected by the market. The bank believes the market may currently be overly concerned about the potential destocking risk for China's battery energy storage system batteries, while overlooking the risk of downside supply caused by the anti-corruption investigation in Jiangxi.