ChargePoint Holdings Inc. (NYSE:CHPT) is the “EV-charging market leader” that is set to expand into the European market, according to one analyst
Capital Ideas Media | April 23, 2021 | SmallCapPower: Investor enthusiasm towards Tesla over the past few years demonstrates the value the market is placing on the expected growth of electric vehicles (EV).
(Originally published on Capital Ideas Media on March 16, 2021)
A Deloitte Insights study, for example, forecasts global EV sales to rise at a compound annual growth rate of 29%, reaching 31.1 million by 2030.
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Furthermore, U.S. President Biden said he wants his country to build 500,000 charging stations over the next decade to support to the anticipated surge in EV usage.
All of which bodes well for ChargePoint Holdings Inc. (NYSE:CHPT). On March 1, ChargePoint became the world’s first publicly-traded global EV charging network, after being by acquired by a SPAC named Switchback Energy Acquisition Corp.
[Editor’s Note: Shares of ChargePoint Holdings surged 26% in the three weeks after Capital Ideas wrote about the company.]
ChargePoint is already the largest EV charging station network in North America, with a worldwide network of more than 115,000 public and private charging ports, and is targeting 2.5 million charging ports in North America and Europe combined by 2025.
The Company generates sales from its hardware and software, along with recurring revenue streams from its platform and service offerings.
And through roaming agreements, drivers can use their ChargePoint account to charge at other stations, which is expected to lower the barrier for EV adoption.
During the past week, ChargePoint reported better-than-expected Fiscal 2021 revenue of $146 million, yet possible investor disappointment in the Company not raising its 2021 revenue estimates, combined with a cooling off period for renewable energy stocks, has driven its stock price down more than 40% from its late 2020 high. This could represent an attractive opportunity for new investors.
Cowen analyst Gabe Daoud, meanwhile, initiated coverage on ChargePoint with an “Outperform” rating and a price target of $43 per share, calling the Company the “EV-charging market leader” that will use the cash ($615 million) from its recently-closed SPAC merger to fund expansion into the European market.
He estimates ChargePoint’s total addressable market to include about $12 billion in hardware potential and $8 billion in network fee revenue across the U.S. and Europe by 2030.
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