As the electric vehicle (EV) market continues to expand, savvy investors are looking for top EV charging stocks to buy. The rising adoption of electric vehicles is pushing governments to improve charging infrastructure, which directly benefits companies in this sector.
According to Precedence Research, the global electric vehicle charging station market, valued at $34.5 billion in 2023, is expected to grow to over $344 billion by 2032. This expansion is driven by both the increase in EV sales and technological advancements in charging solutions. As per PwC, to meet the needs of an estimated 27 million EVs by 2030, the number of charge points in the U.S. will need to increase from 4 million today to 35 million.
With these trends in mind, here are three top EV-charging stocks that investors might consider adding to their portfolios in April 2024. Each of these companies is poised to benefit from the ongoing expansion in EV infrastructure and the broader shift towards sustainable transportation solutions.
Beam Global (BEEM)
Beam Global (NASDAQ:BEEM) is a pioneering company specializing in sustainable energy solutions. The company specifically focuses on electric vehicle charging infrastructure. BEEM has carved out a niche in the EV charging market with its flagship product, the EV ARC 2020. This solar-powered charging station is compatible with major brands like ChargePoint and Blink.
Recent strategic acquisitions have positioned Beam to accelerate its international presence and deepen its technological edge. The acquisition of Amiga, a Serbian streetlamp company, in October 2023, is a perfect example. The move not only expands Beam’s footprint in Europe but also diversifies its product range into streetlamp-integrated charging solutions.
The company has continued to post strong financial results. Recently, BEEM reported record revenues for both the fourth quarter and the full year of 2023. Q4 revenue reached $20 million, marking a 154% increase over the same period in the previous year. Annual revenue for 2023 was $67.4 million, more than tripling from $22 million in 2022. The substantial increase in revenue is primarily due to significant orders from federal, state, and local government customers.
Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) is involved in manufacturing and operating charging stations and selling EV charging equipment. Blink’s business model, which combines equipment sales with high-margin service operations, positions it uniquely against competitors like ChargePoint and EVgo. The company offers a balanced exposure to the capital-intensive nature of hardware and the recurring revenue of service operations.
Blink Charging reported a successful Q4 for 2023, marked by substantial revenue growth and improved operational efficiency. The company reported a fourth-quarter revenue of $42.71 million, up by nearly 89% YoY. In the future, Blink anticipates continued revenue growth and targets a gross margin of around 33% for 2024.
Needham analyst Chris Pierce reaffirmed a Buy rating on the company’s stock after the announcement of the Q4 result.
We see BLNK as well positioned to continue to beat and raise (4Q was BLNK’s third consecutive revenue beat) on initial conservative revenue guidance in conjunction with BLNK’s industry leading gross margin profile and further OPEX leverage on deck. BLNK reiterated guidance for positive adj EBITDA exiting 4Q24, and now aims to get there without any further dilution after leaning on their ATM facility in late ’23/early ’24, removing a potential equity offering as an overhang on the stock. Our $7 price target represents 15x our ’24 adj EBITDA discounted back.
EVgo (EVGO)
EVgo (NASDAQ:EVGO) is a prominent name in the U.S. EV charging sector. The company has over 950 fast-charging locations in the United States. Despite the overall market downturn for EV stocks, EVgo continues to secure strategic partnerships with major automotive manufacturers Toyota, and Honda.
The company reported its Q4 2023 earnings with a revenue of $49.99 million, marking an 83.11% year-over-year (YoY) increase and surpassing market expectations by $5.68 million. The CFO during the earnings call detailed the company’s financial discipline, which has been crucial in managing costs and driving margin improvements, positioning EVgo closer to achieving EBITDA breakeven by 2025.
The sharp decline in EVgo’s stock price to near all-time lows suggests the market might be overlooking its strategic positioning and expansion potential. However, analysts are still bullish and have an average price target of $6.2 on the stock. This presents a potential 257% upside in the near-term.
On the date of publication, Mohammed Saqib 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.
