ChargePoint Holdings (NYSE: CHPT) first caught the attention of investors after the completion of its SPAC merger with Switchback Energy Acquisition Corporation. Changes in the economic and political environment over the past few years have created a growing market for companies like ChargePoint. This includes Joe Biden’s $7.5 Billion charging network infrastructure bill which has been passed through the senate. So what can investors expect over the next 5 years? This article will breakdown everything investors need to know about the ChargePoint stock forecast.
Wallstreet analysts bullish on the ChargePoint stock forecast
DA Davidson sets $30 target for CHPT stock
In late July, DA Davidson analyst Matt Summerville initiated coverage on ChargePoint stock with a $30 price target. The analyst noted that ChargePoint stock possesses the largest active charging port count in the US, alongside its growing presence in Europe. Summerville added that ChargePoint is among the “best-positioned” brands to capitalize on strong demand for EV charging infrastructure. The analysts target represents a 42% upside from the current trading price.
Jeffries analyst sees 5 year revenue CAGR of 57%
Jefferies analyst David Kelley, is another Wallstreet analyst who sees upside in the CHPT stock forecast. Kelley currently holds a Buy rating and $40 price target. The analyst noted that ChargePoint is the U.S. charging infrastructure leader with 59% networked U.S. share. The analyst believes that ChargePoints scale provides “a significant advantage” over competitors according to theFly. Furthermore, the David Kelley has modelled a revenue CAGR of 57% through to 2025.
Roth Capital breakdown the Hastrobe acquisition
Roth Capital analyst Craig Irwin, currently has a $46 price target on CHPT stock. ChargePoint recently entered an agreement to acquire hastobe, a European charging network. Craig Irwin believes the acquisition is “consistent with management’s strategy of win the network first, and sell through ChargePoint hardware”. The $300 Million acquisition will give ChargePoint greater leverage within the European EV charging market.
Revenue outlook – ChargePoint Stock Forecast 2025
Firstly, in the most recent reported quarter ChargePoint generated $56.1 million in revenue. The revenue beat was driven by the vastly growing demand of Electric Vehicle charging stations in the United States and Europe. In particular, the companies Networked Charging revenue grew by 91% to $40.9 million in the second quarter. ChargePoint saw significant quarterly revenue growth in both North America and Europe across the commercial, fleet and residential verticals.
Looking ahead, the company expects to generate between $60 – $65 million in revenue in the third quarter. For the remainder of 2021, the company expects to report $225 – $235 million in revenue, an increase from previous guidance of $195 – $205 million.
For the fiscal year of 2022, analyst expect annual revenue to grow by 60% with the average forecast currently standing at $347.2 Million. This projected year on year growth is attracting investors looking to capitalise on EV infrastructure tailwinds.
Based on earlier investor presentations, ChargePoint forecasts revenue to reach $1.4 Billion by 2025 and $2 Billion by 2026.
What’s the risk with ChargePoint stock?
It is important to understand the associated firm-specific risk of a company. ChargePoint has now been trading for a month as a combined company (post merger) and has seen high levels of volatility. This of course is nothing new for the Electric Vehicle industry, with many industry related companies seeing large swings in share volume.
Secondly, the charging infrastructure industry is heating up. Goldman Sachs analyst Mark Delaney noted earlier this month that ChargePoint will face increasing competition. This is including competition from companies that offer charging hardware for free, which could lead to a more moderate longer-term outlook than ChargePoint projects. In other words, increased competition and charging models such as Volta (NYSE:VLTA) may challenge the companies ambitions at reaching $1.4 Billion in revenue by 2025.
The Bottom Line – ChargePoint stock forecast 2025
In summary, the dynamic shift towards net-zero carbon emissions is exciting ChargePoint investors. Furthermore, the general consensus amongst analysts is bullish with the average 12 month price target above the current trading price.
Overall, the revenue forecasts from analysts also suggest strong growth over the next two calendar years. However, the volatility of the EV market over the past 6 months will play on investors risk appetite as the industry related volatility will inevitably effect CHPT stock.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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