The number of these EV charging stations could increase by 50% thanks to the climate bill
ChargePoint could grow by nearly 50% as the electric vehicle charging station market gets a boost from the Inflation Reduction Act, according to Credit Suisse. Analyst Maheep Mandloi has started covering ChargePoint with better ratings, as the electric vehicle infrastructure company is an industry leader. “We’re positive about ChargePoint, as it benefits from a capital-light growth model, first-mover advantage with integrated solutions, and compelling pricing,” Mandloi wrote in a note Wednesday. Credit Suisse has a $22 price target, up 49.2% from Tuesday’s close at $14.75 per share. Shares were up 1% in pre-market trading Wednesday. The analyst said ChargePoint’s capital-light model could help the company scale up its business after the IRA passes. “Sections 30D, 25E, 45W, and 30C of the Inflation Reduction Act provide tax credits for electric vehicles and electric vehicle infrastructure in the US. The Infrastructure Bill also provides $7.5 billion. la to implement an alternative fuel and electric vehicle charging infrastructure strategy,” Mandloi wrote. The company has activated more than 180,000 ports in the US to date, accounting for more than 48% market share. Meanwhile, more than half of the Fortune 500 companies have adopted ChargePoint. The analyst said ChargePoint also has a strong balance sheet, especially compared to its peers, helping the company manage growth and make strategic acquisitions to strengthen its position. its leadership, according to the analyst. “We forecast revenue to grow at a CAGR of 48% from $241 million in FY22 to $5,621M in FY30. While going forward, our estimates are for Charger sales are in line with BNEF estimates; over the medium to long term, we estimate 10 % increase in charger installations in the US, as regulatory policies favor accelerated EV adoption and also incentivize charger infrastructure”, reads the note. Sure, there are some challenges ahead for the company, including greater competition or any breakthrough in technology like fuel cells that could disrupt the business. — Michael Bloom of CNBC contributed to this report.
