Electric vehicle supplier ChargePoint (NASDAQ:CHPT) got a sudden burst upward after Oppenheimer, via analyst Colin Rusch, declared the stock to be a leading pick in the entire EV sector. Rusch noted that electric vehicle infrastructure has quite a bit of room left to grow. Thus, it can readily improve on current levels for both operating and gross margins. Rusch particularly noted ChargePoint’s software, which is not only unique to the market but should also help bolster sales.
Indeed, ChargePoint has already been busy, as it will be working with Mercedes-Benz (OTCMKTS:MBGYY) and others to bring 400 new fast electric vehicle charging hubs to the United States. Mercedes-Benz’s CEO, Ola Kallenius, declared this move a “…strategic decision to really put our money where our mouth is…”
Many believe that ChargePoint has historically sacrificed its profitability in order to rapidly grow. That may make it a good target for investors, as once the infrastructure is appropriately built out, it could prompt ChargePoint to focus on earnings.
Regardless of potential development, Wall Street is generally in favor of CHPT stock with a Strong Buy analyst consensus rating. Further, thanks to its average price target of $19.38, it has 70.6% upside potential as well.