ChargePoint (CHPT) was upgraded Tuesday as the “best payment method for EV charging”. CHPT stock shot up from a bottom as it works at a buy point and ChargePoint results are due late Thursday.
“The reason for our upgrade is simple: CHPT has a record of execution (and a view of profitability),” Alex Vrabel, an analyst at Bank of America, 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 from fossil fuel vehicles to electric vehicles accelerates.
On May 26th Tesla (TSLA) and ford (F) announced an EV charging partnership in which Ford will use Tesla's Superchargers and adopt its charging standard.
estimates: According to FactSet consensus estimates, analysts expect ChargePoint to limit losses to 19 cents a share in the first quarter ended April 30, up from 21 cents a year ago.
Revenue is expected to increase 57% year over year to $128.3 million. That's above the midpoint of the company's guidance of $122 million to $132 million. But it would be the fourth consecutive quarter that revenue growth has slowed.
Results: Check back on Thursday after the market closes.
outlook: For the full year, analysts are forecasting a net loss of 62 cents per share, FactSet shows. That would be an improvement from a loss of 68 cents per share in fiscal 2023, which ended Jan. 31. Analysts are forecasting first-year earnings of seven cents in fiscal 2026.
CHPT stock hits all-time low
Shares of ChargePoint are up 12% in the stock market today to 9.51, back at the 50-day moving average.
CHPT stock is working at a cup shaped buy point of 13.75 as indicated on the MarketSmith chart. However, the stock had no previous uptrend and was trading below the 200-day moving average.
The load level peaked last April and is trending down, with the 10-week moving average below the 40-week moving average since last November. On May 19, shares hit a record low of 7.82.
Among other stocks for charging electric vehicles EVgo (EVGO) is up 4% on Tuesday, ending a series of negative days. Blinking is charging (BLNK) slipped 1.2%, slipping for the fourth straight session. Dutch oil company sleeve (SHEL), which completed its $169 million purchase of Volta on March 31, fell 2.5% on falling crude oil prices.
F-share rose 4.6% on Tuesday. Jefferies analysts upgraded Ford shares, saying the auto giant's strong growth plan could help it close the gap on its peers.
TSLA shares surged 3%, paring gains after breaking the 200-day moving average during the day. Tesla CEO Elon Musk is in China this week meeting with senior Chinese officials.
Largest charging network for electric vehicles
ChargePoint operates the world's largest network of charging stations for electric vehicles (EV). In Tuesday's statement, Bank of America analysts put their US share at 70%.
“We emphasize CHPT's size and diversity as key to our belief in sustainable growth. Anchor positions in both the US and European EV charging markets offer an elegant but unfocused way to capitalize on electrification trends,” they said.
BofA's Vrabel also pointed to a valuation and story that has “largely changed” since the company's PIPE (private investment in public equity) offering was topped up in 2020.
The analyst advised investors to look past the headlines about the competition. Tesla already sells adapters that allow its electric vehicles to connect to third-party fast charging stations, he said. These companies include ChargePoint, Volta, and Electrify America.
In fact, he expects ChargePoint to “benefit from spilling over TSLA's already congested Supercharger network.”
Vrabel upgraded CHPT stock to buy from neutral but lowered its price target to $14 from $15.50.
With Tuesday's rally, ChargePoint stock is roughly flat year-to-date. It is up more than 20% from the May 19 low of 7.82.
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