Global Courant 2023-05-30 18:01:12
Bank of America thinks electric vehicle charging company ChargePoint is well positioned to benefit from industry and regulatory tailwinds. Analyst Alex Vrabel upgraded the company’s stock to buy from neutral. His new $14 price target implies a 65% rally from Friday’s close. “The rationale for our upgrade is simple – CHPT has proof of execution, visibility into profitability and with its narrative largely unchanged since the PIPE offering, valuation is compelling against stocks hitting all-time lows,” Vrabel wrote in a Tuesday note. . “CHPT (is) a best-in-class way to play (the) EV charging theme,” he added. Shares of ChargePoint are down nearly 19% year to date and 10.9% in 2023. Earlier this month, the stock reached an all-time low of $7.82 per share. Despite the decline, Vrabel said the company’s fundamentals remain intact and he feels comfortable on the “line of sight to cash inflection.” CHPT ICLN YTD mountain ChargePoint Holdings stocks notably underperformed in 2023. He certainly noted that ChargePoint was one of the “worst performing” growth-oriented names in 2023, trailing even the iShares Global Clean Energy ETF (ICLN). which has lost more than 6% so far. “We emphasize that while ChargePoint is theoretically a ‘clean energy’ company, its sources of revenue are broader, primarily linked to a secular narrative surrounding the shift to EVs that is still in its early stages and offers an inordinate view of secular growth “Given the company’s customer, geographic and product diversity, CHPT is a unique ‘broad’ investment in EV charging trends that we believe will weather recessionary pressures in the small segments of its customer base,” said Vrabel. shares of the company rose 5% in premarket trading on Tuesday — CNBC’s Michael Bloom contributed to this report.