Why ChargePoint, Blink Are This Cowen Analyst's Top Picks In EV Charging Sector

With the increased acceleration of electric vehicle adoption, it makes sense for investors to consider electric vehicle charging companies for their portfolios.

Although EV adoption is still in its early stages, Cowen analyst Gabe Daoud told CNBC's "Squawk On The Street" Thursday that he expects significant growth. 

Daoud On EV Charging Stations: EVs are expected to proliferate at about a 30% compound annual growth rate through 2030, which Daoud said will necessitate charging station build-outs. 

A number of companies have come to market in the segment recently via special purpose acquisition companies, the analyst said. 

Daoud said he likes to focus on gross margin potential and whether companies can deploy charging infrastructure profitably. His top picks in the sector are ChargePoint Holdings Inc. CHPT and Blink Charging Co. BLNK.

The Infrastructure Bill: With President Joe Biden focused on  the EV sector, his proposed infrastructure package — should it pass — would be a big boost for companies in the sector, Daoud said.

Biden's plan is to provide grants to support the build-out of 500,000 chargers by 2030.

The bill would be a "pretty positive tailwind for the sector overall," he said.

Regardless of policy support, the analyst said he expects that charging infrastructure build-out will accelerate and experience significant growth throughout the decade. 

CHPT, BLNK Price Action: ChargePoint was up 0.63% to $28.71 and Blink was up 12.94% to $45.90 at last check Thursday.

Image by Paul Brennan from Pixabay.