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J.P. Morgan upgrades ChargePoint Holdings (NYSE:CHPT) to an Overweight rating from Neutral after gaining confidence following a meeting with the company's management team and taking in the recent sharp pullback in share price.
Analyst Bill Peterson: "ChargePoint is a clear leader in the North American commercial Level 2 market with increasing emerging growth opportunities in DCFC in North America and in L2/DCFC in Europe. We anticipate ChargePoint driving significant growth over the next 5-10 years, with revenues outpacing the growth range of EVs in the US and Europe driven by new opportunities in commercial and fleet operations. The company’s software and services business provides ChargePoint an attractive recurring revenue model."
The firm's December 2022 price target of $20 on CHPT is based on an equal-weighted blend of future dated enterprise value/sales and enterprise value/EBITDA discounted back to 2023.
Shares of ChargePoint Holdings (CHPT) are up 2.27% premarket to $11.71 vs. the 52-week range of $11.21 to $43.00.
Sector watch: Electric vehicle stocks are getting caught up in the great value reset of 2022.