Asia Tech Wire (Oct 21) -- Market research firm Bernstein Research has given an outperform rating to Chinese battery maker CATL, according to a new report.

In the report, analysts at the firm noted that CATL is expected to continue to dominate the electric vehicle battery sector over the next five years.

The analysts mentioned that the third-quarter results that CATL recently reported exceeded market expectations, with gross margins reaching 31%, despite lower revenues due to lower sales prices and overcapacity.

They also emphasized that CATL has benefited from its aggressive expansion strategy and the strong relationships it has built with its customers, especially in terms of growth rate and scale that other competitors have struggled to match, adding that the battery maker expects to continue its industry leadership position.

In addition, CATL enjoys significant economies of scale, which enable it to operate at lower costs and higher margins.