© Reuters. UBS downgrades ChargePoint (CHPT) to Neutral as topline trajectory becomes less certain
UBS has downgraded ChargePoint Holdings (NYSE:) to a Neutral rating (From Buy)and cut the 12-month price target on the stock to $2.25 (From $9.00) as the company’s topline trajectory has become “less clear”.
CHPT maintains its position as the primary shareholder in the U.S. for Level 2 (L2) charging ports. With a market share increase this year, the company now holds 44% of the publicly accessible installed base in the U.S.
However, CHPT’s extensive customer base presents an opportunity to further align its revenue growth with EV deliveries and sales.
In the event of reduced deliveries, CHPT is likely to experience a more significant impact compared to its competitors with lower shares in the L2 market.
UBS has cut FY24 and FY25 revenue estimates to $515MM and $611MM (From $628MM and $851MM), respectively.
While CHPT acknowledged weaknesses within its Fleet division, this stands in contrast to competitors like BLNK, who emphasized the end-market as a stronghold.
Anticipating a more challenging competitive landscape, UBS is expecting increased pressure on CHPT’s…
Read the full article here