Needham analyst Chris Pierce reiterated a Buy rating on ChargePoint Holdings (CHPT – Research Report) today and set a price target of $3.00.
Chris Pierce has given his Buy rating due to a combination of factors surrounding ChargePoint Holdings. The optimistic outlook for ChargePoint’s second-half gross margin improvements and operational expense leverage significantly influenced the rating. This positive sentiment mitigates near-term uncertainties about the company’s business model. Pierce’s confidence is further underpinned by ChargePoint’s potential growth in the electric vehicle supply equipment (EVSE) market and its strategic shift towards becoming a software provider in the industry.
The Buy rating is also supported by financial projections, with a $3 price target based on a 12.5 times multiple of the forecasted adjusted EBITDA for the fiscal year ending in January 2028, which is then discounted back to present value. Additionally, this target price corresponds to roughly 2.5 times the company’s estimated revenue for the fiscal year 2025. Pierce’s analysis suggests that, despite medium and long-term uncertainties regarding the pace of electric vehicle adoption, ChargePoint’s financial prospects and strategic positioning warrant a Buy recommendation.
According to TipRanks, Pierce is an analyst with an average return of -21.9% and a 31.91% success rate. Pierce covers the Consumer Cyclical sector, focusing on stocks such as Rivian Automotive, Blue Bird, and ChargePoint Holdings.
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ChargePoint Holdings (CHPT) Company Description:
ChargePoint Holdings (NYSE:CHPT) is an EV (electric vehicle) infrastructure company that develops and markets EV charging systems. It provides networked charging systems and cloud-based software and services to residential and commercial customers and fleet operators.
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