BlackRock (BLK) was one of the investors who participated in a $788 million funding round in electric vehicle charging venture Ionity. Reuters reports that the funds raised will provide the much-needed cash to speed up the construction of high-power loading sites. BLK shares fell 0.50% to close at $930.72 on November 24.
BlackRock is a U.S.-based global investment manager that offers investment management, risk management, and advisory services to institutions and individual investors.
BlackRock Ionity Investment
The investment in lonity makes BlackRock the first shareholder in the electric vehicle venture from outside the auto industry. Consequently, it highlights the growing interest in the electric vehicle sector, which is dominated by cars and the infrastructure for powering cars. (See Top Smart Score Stocks on TipRanks)
The electric vehicle charging venture is yet to provide full details about which other investors participated in the $788 million funding round. However, Reuters reports that existing investors led by Volkswagen (VWAGY), Daimler (DDAIF), BMW, Ford (F) and Hyundai (HYMLF) also participated in the funding round.
Citing sources, Reuters reports that BlackRock was close to investing about €500 million in Ionity last month, prior to taking part in the funding round. Ionity is believed to have attracted interest from the investment firm partly because of the maturity of its business and the sophistication of its existing partnerships.
Ionity is seeking to more than quadruple the number of high power 350-kilowatt charging points by 2025. The venture currently operates close to 1,500 charging points in 24 countries across European motorways.
Last week, Deutsche Bank analyst Brian Bedell reiterated a Buy rating on BlackRock and raised the price target to $1,024 from $1,008, implying 10.02% upside potential to current levels.
Consensus among analysts is a Strong Buy, based on 8 Buys and 1 Hold. The average BlackRock price target of $985.33 implies 5.87% upside potential to current levels.