ChargePoint Holdings (NYSE:CHPT) is scheduled to release its third-quarter Fiscal 2023 results on December 1, after the market closes. The company provides networked charging systems and cloud-based software services to residential and commercial customers.
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Wall Street expects the company to post a Q3 loss of $0.21 per share, wider than the loss of $0.15 per share in the last year’s quarter. Meanwhile, revenue is pegged at $132.3 million, double the figure from $65 million in Q3FY22.
ChargePoint’s quarterly performance is likely to have benefited from growing demand for charging systems as EV sales continue to rise. However, supply-chain disruptions and rising costs may have been offsetting factors.
According to Citigroup analyst Itay Michaeli, ChargePoint’s revenue and gross margins in Fiscal 2024 might remain impacted by the competitive environment and macro challenges. Also, the analyst noted that the stock “appears fairly balanced.”
Michaeli maintains a Hold rating on CHPT stock but lowered the price target to $14 per share from $15.50 ahead of ChargePoint’s Q3 earnings release.
Is ChargePoint a Buy?
Turning to Wall Street, ChargePoint has a Strong Buy consensus rating based on six Buys, and one Hold assigned in the past three months. The average CHPT stock price prediction of $24.57 implies 113.1% upside potential.
Ending Thoughts
ChargePoint’s move to use EV charging stations for advertising should support top-line growth. Also, CHPT’s efforts to expand these stations indicate long-term growth potential but may impact the company’s bottom-line growth in the short term.