ChargePoint (CHPT) operates a multi-national network of electric vehicle (EV) charging stations. I am bullish on the stock. (See Analysts’ Top Stocks on TipRanks)
Ready or not, the revolution in vehicle electrification is here. As more nations set their clean-energy goals, there will be greater demand for low-emission cars, trucks, and buses.
Sure, you could invest in this movement through specific EV manufacturers. Alternatively, you could try a “picks-and-shovels” play with CHPT stock.
There aren’t many stocks on the market today that offer pure exposure to the build-out of EV infrastructure.
That build-out is set to take place soon, and ChargePoint is a business to bet on as America and the world join the electrification movement in the 2020s.
A Quick Look at CHPT Stock
Back in December of 2020, CHPT stock reached its 52-week high of nearly $50.
The fact that the stock hit its peak nearly a year ago suggests that it may be a bargain today.
It’s odd that investors simply haven’t warmed up to ChargePoint over the past 11 months. Have they forgotten that the world will need plenty of EV charging stations soon?
If investors are ignoring CHPT stock, that’s good news if you like the company. Contrarian investors may be interested in this opportunity.
There is strong support at $20, and ChargePoint stock was trading at around $25 in the final days of November.
There’s the potential for the stock to double if it gets back to $50. So, let’s delve into what makes ChargePoint a worthy business to invest in.
A Market Leader
No matter how you slice it, ChargePoint is the front-runner when it comes to investable EV charging-port businesses.
For one thing, there’s no lack of expertise and experience at the company.
ChargePoint President, CEO, and Director Pasquale Romano and Chief Financial Officer Rex Jackson both have 30+ years of experience in their fields of specialization.
Second, it should be noted that ChargePoint got a head start in the EV charging station niche.
The company’s been around since 2007 and has grown to 1,000+ employees.
Third, ChargePoint is truly an international business. It’s based in Silicon Valley but has operations in Arizona, Europe, and India.
Furthermore, ChargePoint simply has an unparalleled charging-port network.
We’re talking about 118,000+ activated EV charging ports, plus 200,000+ accessible via roaming.
A Bill to Electrify the Economy
In case you didn’t get the memo, President Joseph Biden really likes electric vehicles.
As America’s massive $1 trillion infrastructure passed through Congress, Biden emphasized that the funding could help build more than 500,000 charging stations and help make 50% of vehicles electric by 2030.
“You’ll be able to go across the whole darn country, from East Coast to West Coast, just like you’d stop at a gas station now… These charging stations will be available,” Biden predicted.
Not long after that, Biden signed the infrastructure bill into law.
The bill allocates $7.5 billion for electric vehicles, with the objective of increasing the availability of charging stations across the country.
Sure, this is big news for EV stocks in general.
It’s particularly impactful for anyone holding CHPT stock, though, as the bill signals America’s commitment – in spirit and financially – to ambitiously build out the nation’s EV charging network.
Wall Street’s Take
Turning to Wall Street, ChargePoint has a Moderate Buy consensus rating, based on eight Buys and five Holds assigned in the past three months. The average Chargepoint price target is $31.67, implying 24.6% upside potential.
The Takeaway
CHPT stock isn’t the only way to invest in the development of an EV charging-port network.
Yet, the stock provides pure, direct exposure to this high-conviction niche market.
Until another company asserts itself as the leader, ChargePoint is the clear and undisputed front-runner in a market that is poised for explosive growth with the U.S. government’s backing.
Disclosure: At the time of publication, David Moadel did not have a position in any of the securities mentioned in this article.
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