ChargePoint (CHPT) Stock: Why The Price Went Up Today

By Amit Chowdhry ● Jan 31, 2022
  • The stock price of ChargePoint Holdings Inc (NYSE: CHPT) increased by over 8% during intraday trading today. This is why it happened.

The stock price of ChargePoint Holdings Inc (NYSE: CHPT) increased by over 8% during intraday trading today. Investors are responding positively to a bullish research report. 

JPMorgan analyst Bill Peterson upgraded ChargePoint from a “Neutral” rating to an “Overweight” rating with a price target of $20. Peterson pointed out that ChargePoint is “a clear leader in the North American commercial Level 2 market with increasing emerging growth opportunities in DCFC in North America and in L2/DCFC in Europe.“

Plus Peterson anticipates ChargePoint as driving significant growth over the next 5-10 years with revenues outpacing the growth range of electric vehicles in the US and Europe, driven by new opportunities in commercial and fleet operations. 

“The company’s software and services business provides ChargePoint an attractive recurring revenue model. Our Dec-22 price target of $20 is based on an equal-weighted blend of future-dated EV/S and EV/EBITDA discounted back to 2023 and DCF (33% each). Our assigned 6x EV/S, and 25x EV/EBITDA multiples are in line with other high-growth, emerging cleantech, EV, battery, and renewable stocks, and our 18% assigned discount rate (up from 15%) accounts for appropriate risk in the stock amid a rising interest rate environment, in our view,” wrote Peterson in the research note.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.