ChargePoint Holdings (NYSE:CHPT) recently posted its earnings report, and the news was not good. In fact, it was bad enough to cause a hefty sell-off after it hit. However, a recent bit of good news arrived. Sadly for investors, it wasn’t enough to pull ChargePoint out of a slump in Monday’s trading.
The word from Jack Haverty, analyst with Gabelli, noted that ChargePoint’s earnings weren’t all that bad, only missing analyst consensus estimates on earnings by $0.03 and beating expectations on revenue. Revenue projections were also at the top of ChargePoint’s range, and operating expenses were roughly the same as they were the previous quarter. ChargePoint still represents a “top pick” in the sector, Haverty noted, calling the sell-off that followed the earnings report “overblown.”
Even as Haverty talked up the stock, several issues stepped in to cast doubt on shares. ChargePoint’s guidance was something of a disaster, with even the top of the range coming in about $9 million under analyst projections. ChargePoint also noted the recent Tesla (NASDAQ:TSLA) and Ford (NYSE:F) partnership on electric vehicle charging systems but believed that it could still come out ahead on the other side. And with competition coming up fast and ChargePoint’s valuation already proving troublesome to some analysts, the end result isn’t all that great.
However, the bulk of analysts are on ChargePoint’s side. With 10 Buy ratings and three Holds, ChargePoint stock qualifies as a Strong Buy. Better yet, with an average price target of $15.67 per share, it offers investors an upside potential of 79.39%.