The electrification of the world’s vehicles — and the build-out of the necessary infrastructure — is being led by a small handful of companies. Among them is ChargePoint (NYSE:CHPT). Now enterprising investors can seize this opportunity with a position in CHPT stock.
To be honest, it’s baffling that the CHPT share price is as low as it is today. Of course, there’s no shortage of haters and naysayers on social media. But what did the company do to deserve the hate?
In this article, I’m inviting shareholders to channel this frustration into motivation. If the share price is still depressed, that’s only a buy signal if you’re long-term bullish on the company.
The demand for electric vehicle (EV) charging stations isn’t disappearing and ChargePoint is venturing into more than one regional market. Besides, not everyone dislikes CHPT stock. Indeed, some Wall Street experts are now taking a shine to the company.
A Closer Look at CHPT Stock
Just this year alone, the ChargePoint share price has moved significantly higher. In fact, CHPT stock reached multiple $44 closes in January and a $35 close in June. Those didn’t turn out to be great times to take a long position, however.
Yet, here’s something that ought to pique the interest of technical traders. The stock has a very strong support level at $20. Think of this as a price floor.
Notably, CHPT stock touched $20 in March, April, May and October — and then bounced every time.
Of course, I hope you don’t misunderstand me here. There’s no guarantee that the stock won’t crash below $20 in the future. Still, it’s all about observing and respecting the important price levels.
So, if you have a chance to grab some CHPT shares in the low to mid $20s, you might want to hit that “buy” button before the window of opportunity closes.
More Chargers in More Places
ChargePoint certainly isn’t the only publicly tradable EV charging port manufacturer on the market. However, you’d be hard-pressed to find one with a wider network of already established charging stations.
For example, check out this piece of trivia: ChargePoint has delivered more than 98 million charging sessions to date. Believe it or not, EV drivers plug into the CHPT network “every two seconds or less.”
Remember, this company has been around since 2007, so it has had plenty of time to build out its network. And that’s not only in North America. The company has stations in Europe as well. What’s more, I would even go as far to say that the company has been instrumental in accelerating the adoption of electric vehicles in Europe.
To that end, ChargePoint also recently announced a further acceleration into the European EV market. Specifically, it completed an acquisition of leading European electric mobility platform Has·to·be. This move will enable ChargePoint to potentially consolidate the fragmented European charging market through widely deployed charging stations and e-mobility services.
All told, the company’s prospects in Europe are only strengthening the case for CHPT stock.
Exceedingly Vast Potential
But that’s not all. There are other acquisitions making the case for CHPT stock.
For example, ChargePoint recently finalized its acquisition of ViriCiti, a provider of electrification solutions for e-bus and commercial fleets. Importantly, ViriCiti has a sizable customer base in both Europe and North America.
These developments are likely to have made an impression on Needham analyst Vikram Bagri, who asserts that the fleet electrification market has “vast potential.” Bagri likes ChargePoint, calling it an “industry leading fleet product.” The analyst also noted the following:
“[ChargePoint] offer[s] a turnkey fleet electrification service with integrated software, sophisticated hardware, design/build services as well as technical support and O&M through their leading Assure platform”
Bagri has assigned CHPT a “buy” rating along with an optimistic $35 price target. Meanwhile, Stifel analyst Stephen Gengaro initiated his coverage of the stock with another “buy” rating and a price target of $29. Gengaro called the company a “market leader in the EV charging industry, with a 73% market share of networked level two charging.” He also noted that this market share is “over seven times greater than the closest competitor.”
The Bottom Line on CHPT Stock
So, when it comes down to it, there’s no need to be frustrated by the persistently low price of CHPT stock. Rather, the best response is to simply add to your position if you still believe in the company.
And why wouldn’t you? With a wide charging network and the backing of some prominent Wall Street experts, the bullish thesis for ChargePoint is only growing stronger by the day.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
