Christopher Souther, an analyst from B.Riley Financial, maintained the Hold rating on Blink Charging Co (BLNK – Research Report). The associated price target is $3.00.
Christopher Souther has given his Hold rating for Blink Charging Co due to a combination of factors. The company reported impressive revenue with a strong product sales performance, leading to an increase in the 2023 guidance range from $110-120M to $128-133M. However, gross margins witnessed a decline from 37.4% in Q2 to 29.5% in Q3 due to product mix and seasonal charging utilization. Despite this, the company maintains a 30% gross margin target for the year and anticipates better margins for 2024.
The company’s operating expenses (opex) saw a significant reduction, hitting $29.2M excluding $94.2M of impairments, a figure considerably lower than the estimated $36.7M and lower than revenue for the first time in the company’s history. This opex reduction, coupled with solid gross margin improvements, suggests that the company could potentially achieve positive adjusted EBITDA with quarterly revenue of around $60-65M. However, Souther believes that achieving this may be slightly optimistic. Likely, further opex declines through merger synergies and optimization will be necessary for this revenue/gross margin lift.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $4.00 price target.
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Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BLNK in relation to earlier this year.
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Blink Charging Co (BLNK) Company Description:
Blink Charging Co. owns, operates, and provides electric vehicle, charging equipment, and networked EV charging services. Its products and services include Blink EV charging network, charging equipment, also known as electric vehicle supply equipment, and EV charging services. The company was founded by Michael D. Farkas and Eric Greenberg on October 3, 2006 and is headquartered in Hollywood, FL.
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