Swiss bank UBS has started coverage of ChargePoint (NYSE:CHPT) stock with a “buy” rating. The bank placed a $9 price target on the shares, representing a premium of nearly 75% above the stock’s current price of $5.13.
ChargePoint sells electric-vehicle (EV) charging infrastructure and provides maintenance and software for its chargers.
UBS’ Take on CHPT Stock
After CHPT sank 46% so far in 2023 and 68% over the last 12 months, UBS analysts believe that the stock’s valuation is attractive.
Noting that ChargePoint’s network includes more fast chargers than any of its competitors, UBS wrote that these “chargers, in our view, will play a critical role in the United States and enabling EV adoption.” The bank predicts that the deployment of chargers in the U.S. will surge over the longer term as EV sales rise.
Specifically, UBS believes that the demand for chargers will climb “at a 40% compound annual growth rate through 2030.”
Supporting the analysts’ theory, research firm Wood McKenzie predicted in June that the number of EVs in the U.S. would jump 400% to 18 million by 2027.
Another Bullish Analyst Note and Bearish News
On Sept. 8, RBC Capital started coverage of CHPT stock with an “outperform” rating, citing what it sees as the company’s “robust product portfolio, differentiated strategy, and asset-light business model.” Like UBS, the firm expects CHPT to benefit from increased demand for EV chargers going forward.
Additionally, the bank is upbeat about the company’s strategy and predicts that it will start generating positive cash flow by December 2024.
On a negative note, one of the members of ChargePoint’s board, Michael Linse, reported that he had sold 2.3 million shares of CHPT stock earlier this month.
On the date of publication, Larry Ramer 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.
