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Summary

  • ChargePoint Holdings designs, develops, and markets EV charging system infrastructure.
  • ChargePoint reported a revenue of US$ 130 million, and a net loss of US$ 79.4 million for the quarter ended April 30, 2023.
  • As on June 16, 2023, the consensus mean price target on CHPT is US$ 15.58, which is 72.15% higher than its closing price on June 15, 2023.

ChargePoint Holdings (NYSE: CHPT) released its results for the first fiscal quarter ended April 30, 2023, on June 02, 2023. The company reported a revenue of US$ 130 million, which was 59% higher than the company’s revenue in the same quarter of the previous year.

ChargePoint trimmed its net loss to US$ 79.4 million for the quarter, as against a net loss of US$ 89.3 million during the same period of the prior year.

These results were followed by reviewed broker recommendations on CHPT, with most brokers maintaining their previous ratings despite the reported net loss of US$ 79.4 million.

CHPT price chart; Source: EODHD/Others

The consensus mean price target on the stock is US$ 15.58, which is 72.15% higher than its closing price on June 15, 2023. CHPT closed at US$ 9.05 on June 15, 2023. The stock hit its 52-week high late last year on September 15, 2022, at a price of US$19.92.

Recommendation and price target on CHPT

The mean recommendation rating on CHPT is 1.9 on a scale of one to five. Here, one represents a ‘Strong Buy’ recommendation and five represents a ‘Strong Sell’ recommendation. Of the 20 analysts who have covered CHPT stock, six suggest a ‘Strong Buy’ rating on the stock, ten suggest a ‘Buy’ rating and four suggest a ‘Hold’ rating. None of the analysts have given the stock a ‘Sell’ or ‘Strong Sell’ rating.

Guggenheim Securities maintained its ‘Neutral’ rating on the stock post the release of the company’s financial results in Q1 FY24. Meanwhile, Needham & Company, B Riley Securities, D.A. Davidson & Company, and RF Lafferty & Co. maintained a ‘Buy’ rating on CHPT.

Evercore ISI as well as Cowen and Company retained an ‘Outperform’ rating on ChargePoint. Meanwhile, Fox Advisors upgraded their rating on the stock to ‘Outperform’ on June 5, 2023, a few days after the company released its financial results.

A closer look at ChargePoint’s financial results

ChargePoint Holdings is engaged in designing, developing and marketing EV charging system infrastructure. The company also offers cloud-based services, allowing consumers to locate EV stations. The company majorly operates in the US.

The company generated majority of its revenue from through networked charging systems, which brought in revenue of US$ 98.3 million, which was 65% higher than Q1FY23. Meanwhile, subscription revenue was US$ 26.4 million, marking an uptick of 49% from Q1FY23.

Image source: ©2023 Kalkine®; Data source: Company Reports

ChargePoint’s cash on the balance sheet was US$ 313.7 million as of April 30, 2023. The company’s shares outstanding as of April 30, 2023, were around 353 million.

As per the company guidance, the Q2FY24 revenue is expected to fall between US$ 148 million and US$ 158 million. The midpoint of this range marks a 41% increase over Q1FY24.