Why Is ChargePoint (CHPT) Stock Up Today?

  • A Credit Suisse analyst just initiated coverage of ChargePoint (CHPT) with an optimistic rating and price target.
  • Recently passed U.S. legislation could boost ChargePoint’s bottom line.
  • CHPT stock is rallying about 6% in early trading today.
EV stocks: A close-up shot of a ChargePoint charging station.
Source: YuniqueB / Shutterstock.com

Today is clearly a great day to be invested in ChargePoint (NYSE:CHPT). That’s because a Credit Suisse analyst just issued a high price target as well as an optimistic rating on CHPT stock. The analyst cited recent U.S. legislation as a potential positive catalyst for the company.

California-headquartered ChargePoint builds electric vehicle (EV) charging stations. It’s a high-conviction industry, no doubt. But not every day has been profitable for the company’s investors.

Today, however, shares are in the green. This is due to Credit Suisse analyst Maheep Mandloi, who just gave a seal of approval to the company. Reportedly, Mandloi initiated coverage of ChargePoint with an “outperform” rating and a $22 price target.

The analyst cited some EV-friendly legislation passed into U.S. law over this past year:

“Sections 30D, 25E, 45W, and 30C of the Inflation Reduction Act offer tax credits for EVs and EV infrastructure in the US. The Infrastructure bill also provides $7.5B to strategically deploy EV charging and alternative fuel infrastructure.”

What’s Happening with CHPT Stock?

It has been choppy year for CHPT stock so far, but shares are moving up about 6% this morning on heavy trading volume. The next major resistance level for the stock to break through is the $20 mark.

Mandloi’s $22 price objective is based on the passage of the Inflation Reduction Act. This law provides tax incentives for qualified purchases of EVs. The analyst also cited the Infrastructure Bill, which supports the build-out of America’s EV charging network. Mandloi pinpointed ChargePoint as having the right attributes to reap the rewards of this legislation.

“We are positive on ChargePoint, as it benefits from a capital-light growth model, first-mover advantage with integrated solutions, and an attractive valuation.”

The analyst even went so far as to project that ChargePoint’s revenue will increase at a 48% compound annual growth rate (CAGR), from $241 million in fiscal 2022 to $5.62 billion in fiscal 2030. If this actually happens, CHPT stock could easily reach the $22 price target — and beyond.

On the date of publication, David Moadel did not hold (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 Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, 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.

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