Bernstein analysts project Chinese battery giant Contemporary Amperex Technology (CATL) revenue will climb 43% by 2026, viewing the firm as positioned to manage margin pressure from rising metal costs by passing expenses downstream. Geopolitical friction in the Middle East is expected to speed up global electrification efforts, directly benefiting leading suppliers like CATL.

Acquiring a 45% stake in Zhongheng Electric furthers CATL’s vertical integration within the energy storage chain, prompting Bernstein to raise its price target to 620 yuan from 600 yuan, maintaining an outperform rating. This strategic move suggests confidence in capturing market share during the energy transition.

Meanwhile, Macquarie strategists suggest that a new U.S. blockade in the Strait of Hormuz will fail to force Iran into concessions, meaning crude oil prices will likely remain elevated. This environment favors Indonesian producer Medco Energi Internasional, which Bahana Sekuritas rates a buy, expecting 20% EBITDA growth by 2026.

Medco’s upside is tied to higher oil realizations, with analysts anticipating a 26% average selling price increase this year, assuming Brent averages $85 a barrel in 2026. The analyst initiation sets a target price of 2,200 rupiah for the stock, confirming tactical investor interest in oil proxies.