CHPT - ChargePoint: A Contrarian EV Play For Growth Investors
2024-07-04 07:09:40 ET
Summary
- ChargePoint is a long-term play on growing EV adoption, focusing on the U.S. and European markets.
- The EV firm plays a critical role in providing EV charging infrastructure.
- Despite recent revenue declines and valuation losses, ChargePoint's profitability is set to improve and the firm aims for positive adjusted EBITDA in Q4'25.
- Shares have an attractive risk profile and the inflection point of adjusted EBITDA profitability could be a revaluation catalyst.
Investors are faced with an attractive long-term investment opportunity in electric vehicle infrastructure play, ChargePoint ( CHPT ). The company, and its shares, have fallen out of favor with investors in the last year, especially as the EV market started to slow down. Market sentiment towards the electric vehicle sector broadly deteriorated last year, chiefly because of a slowing growth in the market for electric vehicles which caused many manufacturers, both in the U.S. and abroad, to report moderating delivery and revenue growth rates. As an infrastructure play that builds electric vehicle charging stations, however, the company is set to play a critical role in the growth of the industry. The EV firm is also targeting positive adjusted EBITDA in FQ4'25 which could be an inflection point for ChargePoint!...
ChargePoint: A Contrarian EV Play For Growth Investors