This is Why ChargePoint Could More than Double

There’s a critical need for electric vehicle charging stations.

In fact, if the U.S. wants to see millions of electric vehicles (EVs) on the road by 2030, the country needs to put far more charging stations on the road.

Sure, the Biden Administration has a goal of building out a national network of 500,000 EV charging stations. But with EV adoption accelerating, those stations are needed yesterday. It’s part of the reason analysts at RBC Capital just initiated coverage of ChargePoint (CHPT) with a buy rating, with a price target of $9 a share.

According to Barron’s, RBC has “confidence in the path forward.” It also sees the number of U.S. charging ports “going from roughly 1 million today to more than 30 million by the end of the decade,” they added. “That’s more than $75 billion in capital investment, which is good for EV-charging companies, including ChargePoint.”

TD Cowen also has an outperform rating on the stock, with an $11 price target.

They added that “the number of public charging ports in the U.S. must grow to 1.7 million by 2030 to keep pace with a growing EV fleet,” as quoted by CNBC.

“Minimal capex is required in the ChargePoint business model as the company relies on its commercial, hospitality, parking, fleet, and other customers to effectively crowdfund the buildout of EV-charging infrastructure,” said TD Cowen. “This capital-light plan also attaches software to every charging station sold with a nearly ~100% attach rate, offering the company strong visibility into recurring revenue streams.”

CHPT last traded at $5.18 a share.