In a recent update, Bank of America positively shifted its stance on ChargePoint Holdings (NYSE:CHPT), causing shares to jump over 11% at the time of writing. Analyst Alex Vrabel and his team uplifted ChargePoint from a Neutral to a Buy rating with a $14 price target, citing successful business execution and a clear path to profitability that has been consistent since the company’s private investment in public equity (PIPE) offering. Moreover, ChargePoint’s valuation, which hit all-time lows recently, is now considered compelling by BoA.
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ChargePoint’s business model, which focuses on business-to-business operations and leans on its strong North American market share, positions the company well to leverage industry growth and regulatory support. BoA’s optimism about the company’s future is rooted in the expected shift towards cash flow breakeven, which could lessen ChargePoint’s dependence on costly capital markets as it expands its network.
Overall, Wall Street analysts have a consensus price target of $15.22 on CHPT stock, implying over 60% upside potential, as indicated by the graphic above.