by Charging station (CHPT) earned an upgrade on Tuesday as “best-in-class way to pay for EV charging theme.” CHPT stock shot off a low base as it operates at a buy point, with ChargePoint earnings expected late Thursday.
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“The rationale for our upgrade is simple: CHPT has proof of execution (and) visibility into profitability,” Bank of America analyst Alex Vrabel wrote in a note to clients on Tuesday.
ChargePoint is a leading provider of EV charging networks in the US and Europe. It faces competition as the global shift to electric vehicles from fossil fuel cars accelerates.
on May 26 Tesla (TSLA) and ford (F) announced an electric vehicle charging partnership that will see Ford use Tesla’s Superchargers and adopt its charging standard.
ChargePoint Earnings
estimates: In Q1, which ended April 30, analysts expect ChargePoint to limit losses to 19 cents per share versus 21 cents a year ago, according to FactSet consensus estimates.
Sales are up 57% year over year to $128.3 million. That’s above the midpoint of the company’s guidance for $122 million – $132 million. But it would mark the fourth consecutive quarter of declining sales growth.
Results: Come back Thursday after the market closes.
Outlook: For the full year, analysts forecast a net loss of 62 cents per share, according to FactSet. That would represent an improvement from a loss of 68 cents per share in fiscal 2023, which ended Jan. 31. Analysts predict first annual profit of seven cents in fiscal 2026.
CHPT Stock Jumps to Low
Shares of ChargePoint rose 12% today to 9.51 in the stock market, hitting the 50-day moving average.
CHPT shares are working toward a bowl-shaped buy point of 13.75, the MarketSmith chart shows. But the stock has no previous uptrend and was trading below the 200-day line.
Charging stock peaked last April and is on a declining trend, with the 10-week moving average stuck below the 40-week line since last November. On May 19, shares hit a record low of 7.82.
EV charging stocks, among others, EVgo (EVGO) soared 4% on Tuesday, cutting off a string of bad days. Flashing charging (BLNK) eased 1.2%, sliding for a fourth session in a row. Dutch oil company Shell (SHEL), which completed the purchase of Volta for $169 million on March 31, lost 2.5% amid falling crude oil prices.
F-shares rose 4.6% on Tuesday. Analysts at Jefferies raised Ford shares, saying the auto giant’s strong growth plan could help close the gap with rivals.
TSLA stock rose 3%, making gains after releasing the 200-day intraday line. Tesla CEO Elon Musk is in China this week for a meeting with senior Chinese officials.
Largest EV charging network
ChargePoint says it operates the world’s largest network of electric vehicle (EV) charging stations. In Tuesday’s note, analysts from the Bank of America estimated the US stock at 70%.
“We emphasize CHPT’s scale and diversity as key to our belief in sustainable growth. Anchor positions in both the US and European EV charging markets provide an elegant yet unfocused way to capitalize on electrification trends,” they said.
BofA’s Vrabel also cited valuation and a story that was “largely unchanged” since the company’s larger PIPE (private investment in public equity) offering in 2020.
The analyst advised investors to look past the headlines about competition. Tesla already sells adapters that allow its electric vehicles to connect to third-party fast-charging stations, he said. Those companies include ChargePoint, Volta, and Electrify America.
In fact, he expects ChargePoint to benefit “from the overflow of TSLA’s already overburdened Supercharger network.”
Vrabel upgraded CHPT stock to buy from neutral, but lowered its price target from $15.50 to $14.
With Tuesday’s rally, ChargePoint’s stock is about flat so far. It is up more than 20% from its May 19 low of 7.82.
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