The demand for electric vehicles (EVs) has risen significantly over the past two years, thanks to the increasing concerns surrounding climate change, federal tax credits, and skyrocketing gas prices. Russia's invasion of Ukraine caused the U.S. and other countries to impose sanctions on Russia, including bans or reductions of Russian oil imports; this further pushed crude oil prices to record highs. Amid volatile oil prices, consumers are switching to electric vehicles (EVs). According to a forecast by AutoPacific, U.S. EV sales are expected to reach 670,000 in 2022, registering a 37% year-over-year increase.
Federal funding and supportive government policies and incentives are boosting the growth of the EV charging market. Under last year’s bipartisan infrastructure spending bill, the Biden administration allocated $7.5 billion to build electric vehicle charging infrastructure, including a nationwide network of 500,000 EV chargers. According to a recent research report, the EV charging infrastructure market is expected to reach $172.60 billion by 2028, growing at a 34.1% CAGR.
So, given the industry’s promising growth prospects, Wall Street analysts expect EV charging stocks like Blink Charging Co. (BLNK), ChargePoint Holdings, Inc. (CHPT), and Allego N.V. (ALLG) to rally more than 50% in price in the near term.
Click here to checkout our Electric Vehicle Industry Report for 2022
Blink Charging Co. (BLNK)
BLNK in Hollywood, Fla., is a leading owner, operator, and provider of EV charging and networked EV charging services in the U.S. and internationally. The company provides residential and commercial EV charging equipment. In addition, BLNK offers EV charging hardware, software services, and service plans. It provides its services through a direct sales force and resellers and sells residential Level 2 chargers through internet channels. The company has deployed more than 30,000 charging ports.
Last week, BLNK announced international expansion through hardware and software upgrades and newly signed distribution agreements. The company recently completed a global upgrade of the Blink Network and made the proprietary software available in 17 countries and U.S. territories. It is expected to grow BLNK's international footprint by adding five more counties to the Blink Network in the coming weeks.
In January, BLNK agreed with Bridgestone Retail Operations, a subsidiary of Bridgestone Americas, to deploy 50 Blink IQ 200 charging stations at 25 Firestone Complete Auto Care and Wheel Works stores. The company might grow its electric vehicle (EV) footprint through this agreement and boost its revenues.
In its fiscal 2021 fourth quarter, ended Dec. 31, 2021, BLNK's total revenues increased 224% year-over-year to $7.95 million. Its gross profit grew 222.2% from its prior-year period to $1.38 million. BLNK's cash rose 682.4% year-over-year to $174.80 million for its fiscal year 2021 (ended December 31). Its total current assets increased 648.4% from the prior year to $231.91 million.
The $6.71 million consensus revenue estimate for its fiscal 2022 first quarter, ended March 31, 2022, represents 200.8% growth from the same period in 2021. It is no surprise that BLNK has surpassed the consensus revenue estimates in each of the trailing four quarters.
The stock gained 5.4% in price over the past three months and closed the last trading session at $24.16.
Among the three Wall Street analysts that rated BLNK, two rated it Buy, while one rated it Hold. The 12-month median price target of $36.33 indicates a 50.4% potential upside. The price targets range from a low of $29.00 to a high of $50.00.
ChargePoint Holdings, Inc. (CHPT)
CHPT in San Jose, Calif., is the provider of electric vehicle (EV) charging networks and charging solutions in the U.S. and internationally. The company offers a portfolio of charging hardware, cloud-based software, and services. CHPT's networked charging solution types of EVs include cars, buses, trucks, and 18-wheelers. It serves commercial, fleet, and residential customers. CHPT has activated more than 174,000 ports, including 11,500 DC ports.
On April 13, CHPT and Colorado Energy Office completed the first of six electric vehicle fast-charging corridors along Highway 40 from Boulder and Dinosaur near the Utah border. This is expected to boost the company's revenue streams.
On March 29, CHPT partnered with Goldman Sachs Renewable Power (GSRP), a strategic, long-term investor in clean energy projects, to introduce new tailored financing solutions as a part of the ChargePoint as a Service® (CPaaS®) product family. This introduction should reduce the upfront costs of EV charging technology for customers.
On March 28, CHPT and Gatik formed a strategic partnership to establish electric vehicle charging infrastructure and integrated services for CHPT's and Gatik's customers across North America. They will develop an electric ecosystem for autonomous vehicles to maximize sustainability and operational efficiency. This partnership might boost the company's profitability.
CHPT's total revenue increased 90.3% year-over-year to $80.68 million in its fiscal year 2022, fourth quarter, ended Jan. 31, 2021. Its gross profit improved 96.4% year-over-year to $17.48 million. For its fiscal year 2022, ended January 31, the company's cash and cash equivalents rose 116.7% year-over-year to $315.24 million, while total current assets increased 104.9% from the previous year to $464.44 million.
Analysts expect CHPT's revenue for its fiscal 2023 first quarter, ending April 30, 2022, to come in at $76.08 million, representing an 87.8% rise year-over-year. The company has an impressive earnings surprise history; it has surpassed the consensus EPS estimates in each of the trailing four quarters.
Shares of CHPT have increased marginally in price over the past three months and closed the last trading session at $15.25.
Among the 11 Wall Street analysts that rated CHPT, eight rated it Buy, while three rated it Hold. The 12-month median price target of $24.82 indicates a 62.8% potential upside. The price targets range from a low of $16.00 to a high of $34.00.
Allego N.V. (ALLG)
ALLG is an electric vehicle (EV) charging company based in Arnhem, the Netherlands. The company provides charging solutions for electric cars, buses, motors, and trucks. ALLG operates a charging network with renewable energy and charging solutions for business-to-business customers. It has more than 28,000 charging ports across Europe.
Last month, ALLG and Spartan Acquisition Corp. III (SPAQ), a publicly-traded special purpose acquisition company, completed a business combination to establish an NYSE-listed pan-European EV charging network. "Through the proceeds raised by this transaction, Allego is now well-capitalized to accelerate our growth strategy, deploying fast and ultra-fast charging sites with the support of marquee partners and advancing our charging solutions business. As a public company, we expect to remain laser-focused on operating the business and expanding our footprint throughout Europe," said Mathieu Bonnet, CEO of ALLG.
Also in March, ALLG entered a strategic agreement with Tamoil Italia, a leading fuel energy provider in the European downstream oil and gas sector, to develop 11 ultra-fast and fast charging locations throughout Italy. This is expected to extend the company's geographic footprint across Europe to deliver EV infrastructure.
The stock improved 13.4% in price year-to-date and 13.1% over the past three months. It closed the last trading session at $11.19. The 12-month price target of $19.00 indicates a 69.8% potential upside.
Click here to checkout our Electric Vehicle Industry Report for 2022
BLNK shares were trading at $22.86 per share on Monday afternoon, down $1.30 (-5.38%). Year-to-date, BLNK has declined -13.77%, versus a -7.75% rise in the benchmark S&P 500 index during the same period.
About the Author: Mangeet Kaur Bouns
Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions.
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