In the current market, CHPT stock surged by 8.84% to trade at $24.02. CHPT stock previously closed at $22.07. The CHPT stock volume traded at 5.69 million shares. The average 3-month volume is 5.83M.
Chargepoint captures the EV charging infrastructure market
Chargepoint is a fueling network providing company that specifically focuses on the provision and deployment of electric vehicle fuel charging points. The company has provided 90 million sessions up till now across a plethora of charging platforms that exist in North America and Europe. These charging sessions range from the estimate of hundreds of thousands of charging-points that create a session for a car-charging after every 2 seconds approximately.
CHPT stock consists of the most complete portfolio and profile of an electric vehicle charging company out there. The services and charging solutions include a software-based cloud subscription platform and different applications of charging hardware to allow more variety of flexible options for any sort of scenario in the home, work, business, and commercial lifestyle.
Chargepoint has entered the EV market space with a portfolio based on EV-based facilitation services. As the competition in the electric vehicle production in the EV market is becoming fierce and the market expands drastically, the attention is catching on towards the subsectors of the EV market like the EV charging infrastructures. The industries and subsectors gain a tailwind from the growth in the EV.
The future of EV market space and a case for Chargepoint growth
Bloomberg has projected that the number of EVs sold in 2030 will be 26 million units which is over 1400% increase in the EV units compared to 2020s 1.7 million units. Chargepoint has weathered through the competition and comes out on the other side with a robust growth outlook.
This outlook is backed up by the financials of the company, which includes the revenue of $146 million for the fiscal year 2021 and shipping of around 31,263 Chargepoint ports. The company is expecting to increase the revenue and number of ports exponentially by FY2026; revenue up to $2.1 billion and ports up to 425,060. The gross margins are also expected to be up to 42% in FY2026 from 24% in FY2020.
The Biden administration has also announced on Earth Day, the cutting of 50% of emissions over the next nine years by 2030 which makes clean energy stocks like EV more attractive for investors.
Region-wise, the company is number 1 in North America thanks to the SPAC deal through which it rose to a cash position of $615 million. CHPT stock intends to aggressively expand and operate into the European market where it estimates the cumulative charging infrastructure investment through FY2030 to come in at $60 billion.
Overall outlook and plans for the CHPT stock
Three analyst firms have started covering the CHPT stock; earliest since 9th March by Cowen who initiated with a “outperform” rating and a target price of $43. Citigroup initiated on 25th March 2021 and set the rating at “natural” for a target price of $28 while on 16th April 2021, R. F. Lafferty has initiated with a “Buy” rating set to a target price of $29. Overall prospects of the CHPT stock seem attractive to investors for medium-long term investments.
Furthermore, Chargepoint is collaborating on a national scale with NATSO towards its National Highway Charging Collaborative under which it has a commitment of aggressively scaling its efforts to reach $1 billion in investments by 2030 to provide charging points at more than 4,000 travel plazas and fuel stops across the US. 150 DC fast charging points have been deployed so far.