CHPT - ChargePoint Holdings is called fairly valued by Guggenheim
2023-05-02 07:34:05 ET
Guggenheim initiated coverage on ChargePoint Holdings with a Neutral rating.
Analyst Joseph Osha and team said they like the company's strategy and competitive positioning, but also see the stock as fairly valued at its current level.
The long-term view on ChargePoint ( NYSE: CHPT ) is that it will be of the companies likely to survive the coming industry consolidation.
"We believe there are too many EV charging companies at the moment, and we think the future looks tough for companies that have not achieved some scale already. Tesla’s heavily subsidized charging network further complicates matters, especially now that Tesla has begun to open that network to non-Tesla vehicles. CHPT’s scale is a meaningful asset."
However, for the near-term, CHPT is not seen generating positive EBITDA until 2025 due to the high level of spending with free cash flow anticipated to turn positive likely around the same time.
More on ChargePoint Holdings:
- Time To Charge Up With ChargePoint?
- ChargePoint Holdings: Slow EV Adoption Is A Huge Risk
- Read more breakdowns on ChargePoint from Seeking Alpha analysts
- See the financial and valuation comparisons to sector peers
- Dig into the Seeking Alpha Quant Rating
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ChargePoint Holdings is called fairly valued by Guggenheim