Wall Street Favorites: 3 EV Charging Stocks with Strong Buy Ratings in January 2024


  • These 3 EV charging stocks have “Strong Buy” ratings from Wall Street.
  • Allego N.V. (ALLG): ALLG has a $8/share price target, representing a 684% potential return.
  • BYD (BYDDY): The BYD-Shell partnership has produced a large Shenzhen-based EV charging station that can support 3300 EVs per day.
  • Li Auto (LI): Last year, Li Auto produced a roadmap to install 3000 charging stations throughout China by 2025.
EV Charging Stocks January 2024 - Wall Street Favorites: 3 EV Charging Stocks with Strong Buy Ratings in January 2024

Source: Smile Fight / Shuttterstock.com

The electric vehicle (EV) market may be heading toward a general slump, but that does not mean the companies providing the charging infrastructure for EV will not make great investments in January 2024. The electric vehicle charging market happens to be one of the fastest-growing segments in the transportation sector. Consumer preferences are tilting toward EVs rather than the normal combustion engine cars, and supportive government policies coupled with advances in battery technology will continue to drive transformation in the space.

Investors looking to support the growth of EVs should look no further than these 3 “Strong Buy” rated EV charging stocks.

Allego N.V. (ALLG)

A close-up shot of an electric vehicle plugged into an Allego (ALLG) charger.
Source: szmuli / Shutterstock.com

Founded in 2012, Allego (NYSE:ALLG) is a Netherlands-based EV-charging company offering solutions for not just electric cars but also heavy-duty vehicles such as buses and trucks. In essence, Allego provides charging solutions to give private businesses the opportunity to create EV charging infrastructure for consumers. Thus far, Allego has amassed a vast charging network of more than 34,000 charging points across Europe. To help its customers service the Allego charging stations, Allego also offers an EV Cloud Platform.

Also, ALLG reported an impressive Q3 print in mid-November. In particular, revenue increased 28.2% to €28.6 million ($30.2 million), compared to €22.3 9 million ($21.8 million) YOY. Moreover, as of October, Allego recorded over 1 million sessions per month across its charging network. To expand its horizons, towards the end of November, Allego also reported a successful pilot test of its charging station geared toward EV trucks and other heavy-duty vehicles.

Thus far, ALLG has a “Strong Buy” rating from several Wall Street analysts, and analysts have given the EV charging stock a 12-month price target of $8/share. This would imply a 684% potential gain from the current share price of just over $1/share.


A close-up view of the power supply plugged into a vehicle from BYD Company (BYDDY).
Source: J. Lekavicius / Shutterstock.com

BYD (OTCMKTS:BYDDF) is a Chinese EV manufacturer that has risen to overtake Tesla as the world’s largest EV maker by deliveries in 2023. The EV maker has also dethroned Volkswagen as the best-selling car brand in Germany. Outside of having a diversified portfolio of EVs, ranging from passenger cars to buses and trucks, BYD also has a strong presence in the global EV charging market.

Unlike Tesla and other EV charging players, BYD does not build its own charging infrastructure. Rather, the Chinese EV maker has taken a partner approach. In particular, the Chinese automaker has created a number of charging hubs with Shell (NYSE:SHEL) in both Europe and China. Through this partnership, Shell, a company that has been looking for different ways to decarbonize, was able to build its largest ever charging station that has the capacity to serve 3300 EVs per day.

Despite the company’s record growth, shares are trading down more than 16% over the past twelve months. Much of this has to do with investment sentiment around China’s economy, but this could also give investors the opportunity to tap into BYD’s immense growth potential.

Li Auto (LI)

A front view of the Li Xiang One SUV from Li Auto.
Source: Carrie Fereday / Shutterstock.com

Li Auto (NASDAQ:LI) is one of leading electric vehicle (EV) manufacturers in China that focuses on producing smart SUVs with extended-range technology, and the company also has received a “Strong Buy” rating from Wall Street analysts. The company’s flagship model is the Li L7, a five-seater premium SUV that can run on both electricity and gasoline and competes directly with Tesla’s (NASDAQ:TSLA) Model Y. Consistent monthly sales growth continues to show Li Auto’s vehicles are in high demand in the world’s largest auto market. Li Auto’s total deliveries increased 182% on a year-over-year basis in 2023 to 376,030. The automaker has so far deliveries over 600,000 vehicles.

In 2023, Li Auto also announced its own roadmap for building hundreds of EV charging stations along highways in China. The automaker expects its 3000 of its 800-volt fast charging solutions to be built by 2025. These charging stations allow EVs to have a driving range of 400 kilometers with just a 10-minute charge.

On the date of publication, Tyrik Torres 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.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.

Article printed from InvestorPlace Media, https://investorplace.com/2024/01/wall-street-favorites-3-ev-charging-stocks-with-strong-buy-ratings-in-january-2024/.

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