Rising concerns over high gas prices and attractive tax incentives contributed to robust electric vehicle (EV) sales in the first quarter of 2022. Registrations for new EVs soared 60% in the first three months of 2022. Several sanctions imposed on Russia in response to its invasion of Ukraine, including bans on Russian oil imports by the U.S. and other countries, resulted in skyrocketing oil prices. Amid the turmoil in the global energy market, consumers have been encouraged to shift to electric cars. Furthermore, with sales of EVs expected to double every couple of years, 40 million EVs could be on the road by the end of 2030, says Loren McDonald of EVAdoption, which analyzes EV
Also, this month the Biden administration announced that it would begin a $3.1 billion plan to boost domestic manufacturing of batteries in an effort to help the country switch from gas-powered cars to electric vehicles. The White House has set a goal of 50% of total auto sales to be electric vehicles by 2030 and is also constructing a national network of EV charging stations. The EV charging station market’s revenue is estimated to grow at a 27.4% CAGR to $33,284 billion by the end of 2050.
Given this backdrop, Wall Street Analysts expect the shares of fundamentally sound EV charging stocks EVgo, Inc. (EVGO), Blink Charging Co. (BLNK), and ChargePoint Holdings, Inc. (CHPT), which are currently down more than 50% from their all-time price highs, to deliver significant upside in the near term.
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EVgo, Inc. (EVGO)
EVGO in Los Angeles owns and operates a direct current fast-charging network in the United States. The company offers electricity directly to drivers, original equipment manufacturer charging and related services, fleet and rideshare public charging services, and charging as a service and fleet-dedicated charging services.
In March, EVGO announced an expansion to its EVgo Advantage program in partnership with The Save Mart Companies, California's largest regional, family-owned grocer, which operates in more than 200 stores throughout California and Northern Nevada. The EVgo Advantage platform allows drivers to use promotions delivered from EVGO after a charging session is installed at one of the Save Mart, Lucky California, or FoodMaxx locations. EVgo Advantage assists retailers in capturing increased traffic from EV charging customers and differentiates against nearby retailers while also delivering more value to EV drivers who shop while they charge.
During the first quarter, ending March 31, 2022, EVGO's revenue increased 86.4% year-over-year to $7.70 million, while its adjusted gross profit increased 274.3% from its year-ago value to $2.86 million. The company's cash and restricted cash stood at $441.08 million for the three months ended March 31, 2022. Its network throughput of 8.0 Gigawatt-hours (GWh) in the first quarter of 2022 represents an increase of 95% year-over-year.
Analysts expect EVGO's revenue to increase 133.5% year-over-year to $11.17 million in the second quarter, ended June 30, 2022. The stock has declined 5.9% in price year-to-date. Closing yesterday's trading session at $9.35, the stock is currently trading 52.3% below its 52-week high of $19.59, which it hit on Nov. 11, 2021.
Among the eight Wall Street Analysts that rated the stock, five rated it Buy, and two rated it Hold. The 12-month median price target of $13.43 indicates a 43.6% potential upside. The price targets range from a low of $10.00 to a high of $16.00.
Blink Charging Co. (BLNK)
Headquartered in Miami Beach, Fla., BLNK and its subsidiaries own, operate, and provide electric vehicle charging equipment and networked EV charging services in the United States and internationally. The company provides residential and commercial EV charging equipment that enables EV drivers to recharge at various locations.
Last month, BLNK announced that its wholly-owned European subsidiary, Blink Holdings BV, had acquired Electric Blue Ltd. (EB Charging), a provider of integrated EV charging and sustainable energy solutions based in the U.K. This acquisition registers Blink's first entry into the U.K. and adds more than 1,150 chargers, installed, or committed for delivery, to its footprint, augmenting Blink's global expansion in more than 18 countries. The purchase price of this acquisition is up to approximately $23.4 million, in a combination of cash, stock, and earn-out.
For the first quarter, ending March 31, 2022, BLNK's total revenues increased 339.1% year-over-year to $9.80 million. Its cash balance stood at $161.98 million for the three months ended March 31, 2022. In the first quarter, its charging stations contracted or sold amounted to 3174, representing a 99% increase from its year-ago value.
Analysts expect BLNK's revenue to increase 112.3% year-over-year to $9.25 million for the second quarter, ending June 30, 2022. The stock has plunged 35.8% in price year-to-date. Furthermore, closing yesterday's trading session at $17.02, the stock is currently trading 65.3% below its 52-week high of $49.00, which it hit on Nov. 17, 2021.
Among the five Wall Street Analysts that rated the stock, two rated it Buy, and three rated it Hold. The 12-month median price target of $29.20 indicates a 71.6% potential upside. The price targets range from a low of $17.00 to a high of $50.00.
ChargePoint Holdings, Inc. (CHPT)
CHPT in Campbell, Calif., provides electric vehicle charging networks and solutions in the United States and internationally. It provides hardware, software, and services portfolio for commercial, fleet, and residential customers.
Last month, CHPT announced the completion of the first among six electric vehicle fast-charging corridors in collaboration with the Colorado Energy Office. Corridor A runs along Highway 40 from Boulder to Dinosaur near the Utah border. The fast-charging highway corridors project is a public-private partnership involving a $10 million investment by the Colorado Energy Office, which involves funding from the Volkswagen Settlement and Congestion Mitigation and Air Quality (CMAQ) Improvement Program, along with investments by CHPT, local jurisdictions, electric utilities, and Colorado businesses.
Also, in March, CHPT announced a partnership with Goldman Sachs Renewable Power (GSRP), a strategic, long-term investor in clean energy projects. ChargePoint, in collaboration with Goldman Sachs Renewable Power, is introducing new tailored financing solutions as part of the CHPT's as a Service (CPaaS) product family to reduce upfront costs of EV charging technology for eligible customers.
During the fourth quarter, ending Jan. 31, 2022, CHPT's total revenue increased 90.3% year-over-year to $80.68 million. Its gross profit grew 96.4% from its year-ago value to $17.48 million. Its cash and cash equivalent stood at $315.24 million for the year ending Jan. 31, 2022.
Analysts expect CHPT's revenue to increase 87.6% year-over-year to $76.00 million for the first quarter, ending April 30, 2022. Also, it has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of the trailing four quarters. The stock has declined 43.7% in price year-to-date. In addition, closing yesterday's trading session at $10.73, the stock is currently trading 70.9% below its 52-week high of $36.86, which it hit on June 29, 2021.
Among 12 Wall Street Analysts that rated the stock, nine rated it Buy, and three rated it Hold. The 12-month median price target of $24.58 indicates a 129.1% potential upside. The price targets range from a low of $16.00 to a high of $34.00.
EVGO shares were trading at $8.86 per share on Wednesday afternoon, down $0.49 (-5.24%). Year-to-date, EVGO has declined -10.87%, versus a -16.92% rise in the benchmark S&P 500 index during the same period.
About the Author: Spandan Khandelwal
Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing.
Wall Street is Bullish on These 3 EV Charging Stocks Down More Than 50% From All-Time Highs StockNews.com
