ChargePoint Analysts Term Q4 As Impressive, See Scope For Upside To Robust Guidance

ChargePoint Holdings Inc CHPT shares are advancing strongly in reaction to its quarterly results.

The ChargePoint Analysts: Needham analyst Vikram Bagri maintained a Buy rating and a $24 price target.

Jefferies analyst David Kelley maintained a Buy rating but lowered the price target from $34 to $28.

ChargePoint Well-Positioned To Achieve Long-Term Targets, Needham Says: ChargePoint delivered another impressive quarter, with top- and bottom-line beats and 2023 revenue guidance that exceeded estimates, Bagri said.

The positive guidance is attributable to growing electric vehicle adoption, strong growth in fleet pipeline and OEM dealerships, and continued strength in residential, the analyst said.

The analyst sees potential for upside to the 2023 revenue guidance. Supply chain and logistical issues are expected to have a 6% point impact on 2023 margins, he added.

Longer-term, the company expects to reach cash flow breakeven in the calendar year 2024, as supply chain issues subside, product mix improves and operating leverage boosts margin, the analyst said.

"Unlike peers, CHPT is well-positioned to achieve its LT (beyond CY22) financial targets laid out in the SPAC presentation," Bagri said.

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Accelerating Revenue Growth Reflects Market Leadership, Jefferies Says: ChargePoint's fourth-quarter margin missed expectations due to supply chain constraints and spending to support growth initiatives, Kelley said.

"We believe accelerating revenue growth reflects CHPT's market leadership ahead of robust charging infrastructure ramp," the analyst said.

Strong adoption of EVs in Europe and the U.S. should remain a meaningful sales driver for the company for several years, Kelley said. The guidance does not assume WFH reversal and workplace recovery could lead to volume upside in 2023, he added.

"We believe the strategy to spend for growth near-term will bear longer-term fruit given steady 60% rebuy rates with existing customers and likely ability to compound subscriptions," Kelley said.

CHPT Price Action: ChargePoint shares were up 6.64% at $15.01 at market close Thursday.

Photo: Courtesy ChargePoint