ChargePoint
stock plunged Thursday after disappointing news Wednesday. Late Thursday, the stock got a new rating from a bullish analyst. It could push shares higher on Friday.
Stock in the maker of electric vehicle charging equipment fell as much as 28% on Thursday before closing down 10.9% at $6.29 a share. An earnings report did it. Guidance for the current quarter was light. The company expects to generate between $150 million and $165 million in third-quarter sales, while Wall Street was projecting about $178 million.
Sales in the year-ago quarter came in at about $125 million so there is growth—just not as much growth as expected.
Current levels are an opportunity, according to RBC analyst Chris Dendrinos. He launched coverage of ChargePoint (ticker: CHPT) with a Buy rating and a $9 price target on Thursday evening.
The stock hasn’t reacted much yet. They were down about 1% in premarket trading while
S&P 500
and
Nasdaq Composite
futures were both off about 0.2%.
Dendrinos has “confidence in the path forward.” RBC sees the number of U.S. charging ports going from roughly 1 million today to more than 30 million by the end of the decade. That’s more than $75 billion in capital investment, which is good for EV-charging companies, including ChargePoint.
“The robust product portfolio, differentiated strategy, and asset-light business model position [ChargePoint] to be a key beneficiary of positive secular trends in vehicle electrification and growing demand for charging infrastructure,” wrote the analyst. ChargePoint sells equipment and software to charging station operators, receiving sales on the equipment and aftermarket sales on software and service.
Overall, 73% of analysts covering the company rate shares a Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst target price is about $11.70 a share.
Coming into Friday, ChargePoint stock has fallen about 64% over the past 12 months. Rising interest rates and a slowing economy have sapped some investor enthusiasm for shares of start-up companies that aren’t profitable.
Wall Street projects full-year profit for ChargePoint around calendar year 2026.
Dendrinos also launched coverage of
EVgo
(EVGO) stock with a Hold rating and a $5 price target. Shares were flat in premarket trading.
Overall, 36% of analysts covering the company rate shares Buy. The average analyst price target is about $6.75 a share.
Coming into Friday,
EVgo
stock has declined about 59% over the past 12 months. Wall Street projects full-year profit for EVgo around 2027.
Read the full article here