ChargePoint (NYSE:CHPT) shares jumped Tuesday after Bank of America upgraded the stock to buy. The Wall Street firm called ChargePoint a best-in-class way to play the EV charging theme, highlighting the company’s scale and diversity as keys to sustainable growth.
Analyst Alex Vrabel and team think ChargePoint Holdings has proof of execution, as well as a line of sight to profitability with its story largely unchanged since the PIPE offering. Valuation on CHPT is also called compelling with shares recently making all-time lows.
"The company is well positioned to capitalize on industry and regulatory tailwinds given their premium asset light business-to-business model, and strong North American market share. The thesis is based on an inflection to cash flow breakeven reducing the reliance on expensive capital markets as the company builds out its network."
In regard to the recent news about the Ford-Tesla Supercharger tie-up. BofA sees a possible spillover benefit for ChargePoint Holdings
BofA assigned a price objective of $14.00 to ChargePoint Holdings.
ChargePoint designs and provides hardware and software to electric vehicle charging stations in the U.S., Canada, and Europe. The current portfolio consists of approximately 225,000 outlets covering commercial operators (such as retail malls, offices, and airports), fleet operators (delivery vehicles, ridesharing), and private homes and apartments. The charging portfolio consists mostly of slow-charging alternating current ports with a small portion of fast-charging direct current ports.
CHPT shares, well, charged ahead $1.04, or 12.2%, Tuesday to $9.54.
