ChargePoint's stock (NYSE: CHPT) is on the move leading into earnings, up 8.4% today, after a difficult start to the year that has seen the company shed 25% of it's market cap. The firm, a key player in the electric vehicle (EV) charging infrastructure sector, is expected to report -$0.06 in EPS, alongside revenue of $100.58 million on the quarter.
Whilst sales are expected to decline by 6% compared to the same period last year, the EPS figure is set to improve on the $0.11 loss experienced YoY. Despite the expectations for the quarter, annual revenue is expected to grow 9.69% in FY26, and 23.9% in FY27.
In the past year, the stock has been on a downward trajectory, falling ~50%. However the last month of trading has shown the bulls' fight, with the share price up more than 44% on the period.
The August 2024 financial update revealed a 28% year-over-year revenue decline, yet the company managed to substantially improve its GAAP gross margin, rising from 1% to 24%. Subscription revenue grew by 21%, indicating efforts to build recurring income streams. In response to mounting pressure, ChargePoint enacted a reorganization plan that included cutting 15% of its workforce, targeting $41 million in annual operating expense savings.
Despite these challenges, ChargePoint continues to pursue strategies for stabilization and growth. Notably, the company is partnering with General Motors to install hundreds of ultra-fast EV charging ports across the U.S. by the end of 2025. It also secured more than $19 million for 248 DC fast charging ports along California highways through the NEVI program. These partnerships and infrastructural expansions demonstrate ChargePoint’s commitment to capturing EV market momentum.
Market confidence in ChargePoint has deteriorated, reflected in several analyst downgrades and target cuts. B Riley, UBS and Goldman Sachs have all lowered the firm's target price on CHPT in the last month. The average target price on ChargePoint is $1.14, with the lower end of the price targets being $0.50 and the high is $3.00.
The current share price is well below the average target price suggesting the potential for upwards movement, but the share ratings are overall negative. These moves underscore concerns about ChargePoint’s ability to compete and capitalize on the growing EV market.
| Date | Analyst Sentiments |
|---|---|
| 05/12 | B. Riley has lowered the firm's price target on ChargePoint from $1.50 to $1 and maintains a “Neutral” rating on the shares |
| 04/17 | UBS dropped the firm's price target on ChargePoint from 70c to 65c and keeps a “Neutral” rating on the shares |
| 04/10 | Goldman Sachs decreased the firm's price target on ChargePoint from 75c to 50c and retained a “Sell rating” on the shares. |
The company comes into earnings with a tailwind for the first time in a while. Strategic partnerships, cost-containment efforts, and an expanding infrastructure footprint offer possible paths to recovery and future growth. Today's report could well prove illuminating.
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