CHPT Stock: The Big EV News That Has ChargePoint Powering Up Today

Shares of ChargePoint Holdings (NYSE:CHPT) are poised to gain for a fourth-straight session on the heels of its progress update on the National Highway Charging Collaborative. CHPT stock was up more than 6% at 7:15 a.m. Eastern on Wednesday.

CHPT a chargepoint charging station

Source: Michael Vi / Shutterstock.com

The charging network said on Tuesday that working on the collaborative with the trade group representing travel plazas and truck stops, more than 150 DC fast charging spots have been added to the 1,500 spots previously available on ChargePoint’s existing network.

Bloomberg NEF estimates EVs will make up 10% of all vehicles sold by 2025 and increase to more than 29% by 2030. That’s made EVs one of the hottest investment themes out there today. Naturally, with a flood of electric vehicles set to hit the market, it creates a huge market for various products and services that empower EVs, including ChargePoint and Blink Charging (NASDAQ:BLNK).

What Infrastructure Plan Means for CHPT Stock

President Joe Biden is set to unveil a roughly $2.25 trillion infrastructure and stimulus plan in Pittsburgh later today. He will call for broad investment in electric vehicles, renewable power and the electric grid as part of an ambitious blueprint to bolster the U.S. economy while combating climate change, Bloomberg reported.

Investors are betting that the Charging Collaborative, an initiative that will leverage $1 billion in public and private capital to deploy charging at more than 4,000 locations serving highway travelers and rural communities nationwide by 2030, will benefit from Biden’s big plans.

However, CHPT stock has not seen a payoff in the promise. As InvestorPlace contributor Muslim Farooque noted earlier this week, since closing its merger with Switchback Energy Acquisition last month, CHPT stock is down roughly 30%. That decline sets up “an excellent opportunity to pick it up at a massive discount,” he wrote.

Even with the gains of the last few days, CHPT stock is trading at about half the $40 12-month median target price of five analysts offering forecasts. At current levels and with that target, the shares offer investors more than 75% upside.

The contrarian among the analysts is Citi, which late last week initiated coverage on the company. CHPT stock was added to the big bank’s research universe with a “neutral” rate and a price target of $28.

On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.


Article printed from InvestorPlace Media, https://investorplace.com/2021/03/chpt-stock-the-big-ev-news-that-has-chargepoint-powering-up-today/.

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