CHPT - ChargePoint Holding rallies after BofA upgrades to a Buy rating

2023-05-30 07:01:04 ET

Bank of America upgraded ChargePoint Holdings ( NYSE: CHPT ) to a Buy rating on Tuesday after having the electric vehicle battery charging stock line up at Neutral.

Analyst Alex Vrabel and team think ChargePoint Holdings ( CHPT ) has proof of execution, as well as a line of sight to profitability with its story largely unchanged since the PIPE offering. Valuation on CHPT is also called compelling with shares recently making all-time lows.

"The company is well positioned to capitalize on industry and regulatory tailwinds given their premium asset light business-to-business model, and strong North American market share. The thesis is based on an inflection to cash flow breakeven reducing the reliance on expensive capital markets as the company builds out its network."

In regard to the recent news about the Ford-Tesla Supercharger tie-up. BofA sees a possible spillover benefit for ChargePoint Holdings ( CHPT ).

BofA assigned a price objective of $14.00 to ChargePoint Holdings. Shares of CHPT moved up 5.20% in premarket trading to $8.93.

More on ChargePoint Holdings

• ChargePoint May Be Running On Empty
• More articles from Seeking Alpha analysts
• ChargePoint earnings call transcript
• Growth metrics on ChargePoint Holdings
• Seeking Alpha's Quant Rating for ChargePoint

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