This 'Capital Light' Firm With 'First-Mover' Advantage Attracts New Bull Who Sees 50% Upside For The Stock

ChargePoint Holdings Inc CHPT benefits from a “capital-light” growth model, enjoys a first-mover advantage with integrated solutions and the current valuation of its stock is attractive, according to Credit Suisse.

The ChargePoint Analyst: Maheep Mandloi initiated coverage of ChargePoint with an Outperform rating and a price target of $22.

The ChargePoint Thesis: The company has activated over 180,000 ports across the US, representing a market share of more than 48%, Mandloi said in the initiation note.

ChargePoint’s “outsized” market share is driven by its capital-light approach, “in which customers own and monetize sites,” the analyst mentioned. “CHPT’s products and service revenue is not contingent on utilization either, which is a bottleneck for asset operators,” he added.

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Mandloi expects the company to capture more than 50% of share in Fortune 500 companies, “primarily due to its scale and ability to provide a one-stop shop for hardware, software, and operational support.”

He also expects strategic acquisitions to “further strengthen” ChargePoint’s sales, hardware, software and services leadership.

CHPT Price Action: Shares of ChargePoint had risen by 5.05% to $15.50 at the time of publication Wednesday.

Image: Courtesy of ChargePoint