ChargePoint Analyst Remains Cautious About Long-Term Profitability

ChargePoint Holdings, Inc. CHPT shares are trading higher on Wednesday. JPMorgan analyst Bill Peterson remained Underweight with a price forecast of 81 cents following fourth-quarter results reported yesterday.

The company reported quarterly losses of 14 cents per share, in line with the analyst consensus estimate. Revenue of $101.88 million beat the analyst consensus estimate of $101.71 million.

For the first fiscal quarter, ChargePoint expects revenue of $95 million to $105 million, versus the $101.53 million estimate.

The analyst writes that revenue growth seems unlikely to be materially impacted by NEVI/30C pullbacks. Changes to EV tax credits could hinder some positive momentum.

Margins are expected to improve in the second half as Asian manufacturing ramps up and upcoming tariffs are not a concern due to a diversified supply chain, adds the analyst.

Peterson further says that the company’s channel inventory is normalized, with higher-cost inventory being cleared, leading to favorable working capital outcomes.

ChargePoint is optimistic about achieving EBITDA positivity this fiscal year, with improved cost structure and higher revenues, though the timing and pace remain uncertain, adds the analyst.

Overall, the analyst writes that while there are signs of progress in both revenue and cost management, he remains cautious about CHPT’s path to profitability in the coming quarters.

Investors can gain exposure to Joby through WisdomTree Trust WisdomTree Battery Value Chain and Innovation Fund WBAT.

Price Action: ChargePoint shares are up 7.5% at $0.7101 at the last check Wednesday.

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