Home Market News Micro Cap Stocks Why Analysts are Bullish on CHPT in the North American Public Charging Market

Why Analysts are Bullish on CHPT in the North American Public Charging Market

0
Why Analysts are Bullish on CHPT in the North American Public Charging Market

Despite recent agreements between vehicle OEMs and Tesla, Oppenheimer analyst Colin Rusch has reiterated an Outperform rating on ChargePoint Holdings Inc (CHPT) and lowered the price target from $14 to $13.

Last week, CHPT announced a commitment by investors to purchase $175 million of common stock and raised net proceeds of $57 million. Additionally, CHPT extended the due date of its convertible debt and adjusted the convertible price.

Analyst Colin Rusch has made changes to his estimates taking into account additional interest expense on the convertible debt and dilution from equity sold. However, he has not changed revenue or operating expense estimates.

Despite the agreements between vehicle OEMs and Tesla, the analyst believes CHPT will continue gaining market share in the North American public charging points.

The analyst is optimistic about CHPT’s management commitment to flat-lining operating expenditure until reaching EBITDA+ targets and the company’s strong balance sheet. The price target is based on the analyst’s revenue estimate of $1.09 billion for FY26.

Currently, CHPT shares are trading higher by 5.77% at $3.57.