3 Top-Rated EV Charging Stocks Wall Street Analysts Are Loving Now: January 2024


  • Wall Street analysts are rightfully interested in EV charging stocks.
  • ChargePoint (CHPT): ChargePoint is the largest U.S. EV charging network provider.
  • EVgo (EVGO): EVgo plans to install up to 3,700 Level 3 DC fast-charging ports in 2024.
  • Blink (BLNK): Blink was recently upgraded to a “Buy” rating.
Top-Rated EV Charging stocks - 3 Top-Rated EV Charging Stocks Wall Street Analysts Are Loving Now: January 2024

Source: shutterstock.com/Dmytro_Yushchenko

Starting in 2024, the Internal Revenue Service (IRS) extended an improved version of a tax credit system for electric vehicle (EV) buyers to 2032. Individuals purchasing used or new domestically manufactured EVs can instantly claim tax credits of up to $7,500, regardless of their tax liability. This move is a game-changer, as it expands the accessibility of the tax credit and aims to incentivize the adoption of EV cars. Also, the EV charging equipment tax credit of up to $1,000 remained in place, further bolstering prospects for some top-rated EV charging stocks.

In addition, the Biden administration just announced $623 million to expand EV charging infrastructure in the U.S. The funding aligns with a target of installing 500,000 EV chargers nationwide by 2030 to facilitate  “reliable and fast charging stations”. The timing makes some EV charging stocks a preferred choice for investors.

With expectations of rate cuts and increased capital investment, EV manufacturers may resume programs postponed during the second half of 2023. Despite a slower growth rate of EV sales, volumes did not decline. 2024 is also expected to surpass 19 million units, making up 13% of new car sales. Combining tax incentives and lower interest rate expectations could boost sales even further and support EV charging stocks. 

Given recent policy developments, infrastructure funding and expected consumer demand, now may be an opportune time to research the top-rated EV charging stocks Wall Street analysts are loving in January.

ChargePoint (CHPT)

A close-up of an orange ChargePoint (CHPT) station.
Source: JL IMAGES / Shutterstock.com

ChargePoint (NYSE:CHPT) operates the largest public EV charging network in the U.S., with over 31,000 locations and 56,000 charging ports. 96% of the company’s ports are fast Level 2 chargers, taking 3-8 hours to charge an EV fully. The company is well-positioned to benefit from its existing fast-charging infrastructure compared to 11-20 hours using Level 1 chargers.

CHPT reaffirmed its plan to achieve positive non-GAAP Adjusted EBITDA in Q4 of 2024. The company more than doubled its revenue from last year, totaling $543 million compared to $241 million on January 30, 2022, leaving no questions about why Wall Street analysts love the EV charging stock.

Recently, Citigroup maintained a “neutral” rating with a $2.40 price target, while DA Davidson reiterated a “buy” rating and a $4.00 price target. On average, nineteen Wall Street analysts give a price target of $3.79, double the current price of $1.90. Coupled with laying off 12% of its workforce, the EV charging stock may continue to ascend in January.


EVgo fast charging station
Source: Sundry Photography / Shutterstock.com

EVgo (NASDAQ:EVGO) has over 850 locations and over 3,000 connectors, but most ports are the Level 3 faster-charging ports that operate using direct current (DC). These chargers have an average charging time of 30-60 minutes, providing a more convenient option for drivers focused on port locations and charging costs.

Concerns about a recession have also eased since EVGO was last downgraded in October. With the economy recovering and the U.S. expected to dodge a recession, commercial customers may be more willing to buy.

But Wall Street analysts are loving EVgo because the company reported a revenue increase of 234% YOY in Q3 and expects to have 3,400-3,700 DC stalls in operation or under construction by the end of 2024. Eight analysts forecast an average price target of $6.19, more than double its current level of $2.71, a substantial boost for the EV charging stock.

Aside from partnering with Honda (NYSE:HMC) to provide EVgo network access and charging credits to Honda and Acura EV drivers, EVGO recently extended its partnership with Toyota (NYSE:TM) bZ4X customers. The combination of DC charging infrastructure, improving economic conditions and partnerships all contribute to the positive outlook for the EV charging stock.

Blink (BLNK)

a blink charging station, BLNK stock
Source: David Tonelson/Shutterstock.com

Blink (NASDAQ:BLNK) has more than 3,500 stations as compared to ChargePoint and EVgo, but almost entirely Level 2. However, according to its Q3 report, the company contracted, deployed or sold nearly 6000 charging stations during that quarter alone. This resulted in record total revenues of $43.4 million in Q3, up 152% YOY.

With an advantage in manufacturing production, Blink’s product sales increased 162% to $35.1 million, and service revenues increased 119% to $6.7 million. The company anticipates ongoing growth opportunities as EV adoption increases and charging infrastructure expands. It targets positive EBITDA by the end of the 2024. Notably, the adjusted EBITDA loss improved to $11.7 million compared to a $17.6 million loss in the prior year period.

Most recently, Needham upgraded Blink to a “buy” rating, providing a $7 price target on January 8. This was the first EV charging stock upgrade among the three top-rated EV stock picks, up from the current price level of $2.54. 11 Wall Street analysts see an even higher price target of $10.55 for the EV charging stock. Coupled with rising short interest of nearly 33%, up from 29% previously, a short squeeze raises the prospect of a January price spike.

On the date of publication, Stavros Tousios 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.

Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.

Article printed from InvestorPlace Media, https://investorplace.com/2024/01/3-top-rated-ev-charging-stocks-wall-street-analysts-are-loving-now-january-2024/.

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