ChargePoint downgraded to Neutral from Buy at Roth MKM

Roth MKM downgraded ChargePoint to Neutral from Buy with a price target of $2, down from $11. The company ChargePoint will post weak fiscal Q3 results on generally weak macro demand for electric vehicle charging hardware from below-trend EV sales velocity, the analyst tells investors in a research note. The firm believes the recent capital raise is insufficient to support management’s planned path to profitability. As such, it expects another material $50M-plus restructuring incremental to the planned $30M in cost savings announced on the Q2 call. Roth could look to turn constructive on an improved growth trajectory with longer-term profit visibility. ChargePoint’s Q3 pre-release shows “material deterioration,” says Roth.