ChargePoint Holdings, Inc.
ChargePoint Holdings, Inc. (NYSE: CHPT) manufactures and markets networked electric vehicle (EV) charging system infrastructure and cloud-based services that allow users to search for, reserve, authenticate, and transact EV charging sessions. It offers an open platform that connects to its system hardware and other manufacturers, connecting systems through an intelligent network that provides real-time charging session data. Owners of charging stations, fleet managers, drivers, and utilities can access various web-based portals through the company's network.
Valuation Methodology: Price/Sales Per Share Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
CHPT's stock price has fallen 46.71% in the past nine months and is currently leaning towards the lower end of its 52-week range of USD 11.21 to USD 36.86. We have valued the stock using the Price/Sales-based relative valuation methodology and arrived at a target price of USD 19.01.
Considering the significant correction in the stock price, solid top-line performance, recent collaborations and accreditations, positive outlook, associated risks, and current valuation. We recommend a "Speculative Buy" rating on the stock at the closing price of USD 15.73, up 9.24% as of March 07, 2022.
Three-Year Technical Price Chart (March 07, 2022). Source: REFINITIV, Analysis by Kalkine Group
Technical Analysis Summary:
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.