2 ChargePoint Analysts Break Down Q2 Earnings

ChargePoint Holdings, Inc. CHPT, an operator of a network of charging stations in the U.S. and Europe, reported strong second-quarter results Wednesday. Here's what the Street has to say. 

The ChargePoint Analysts: Needham analyst Vikram Bagri maintained a Buy rating on ChargePoint shares and lowered the price target from $39 to $35.

Roth Capital Partners analyst Craig Irwin reiterated a Buy rating and $46 price target.

ChargePoint A Formidable Player, Needham Says: ChargePoint's quarterly revenues beat the company's guidance and the consensus by 16% and 14%, respectively, Needham analyst Bagri said in a note. 

The gross margin was impacted by supply chain issues and stock-based compensation, the analyst said. 

The company raised the fiscal year 2022 revenue guidance by about $30 million, reflecting the first-half beat and improved outlook, he said. 

The analyst expects the company's recent acquisitions to be margin accretive.

The last three quarters have demonstrated the company's ability to set realistic targets and exceed expectations through strong execution, he said. 

"In 2QF22, CHPT made itself a formidable player in the market by strengthening its fleet offering through software launches, the ViriCiti acquisition and new partnerships," Bagri said.

Needham raised its revenue estimates to incorporate the updated guidance but lowered its gross margin expectations.

Related Link: How ChargePoint Plans To Ride The EV Wave

ChargePoint Management Is Executing, Roth Says: Growth was strong in all segments, and the push into Europe is making substantial progress, Roth analyst Irwin said.

The adjusted EBITDA modestly exceeding estimates shows management is executing well and delivering upside growth inside its original expense budgets, the analyst said. 

CHPT Price Action: At last check, ChargePoint shares were up 7.44% at $22.83. 

Related Link: EV Charging Company ChargePoint Going Public Via SPAC: Report

Photo courtesy of ChargePoint.