The last time I weighed in on ChargePoint Holdings (NYSE: CHPT) stock, I said it “could be one of the most electrifying stocks of 2022. That is if we see further progress on electric vehicle charging stations.”
That was on March 4, as the CHPT stock traded around $15 a share. Shortly after, the EV charging stock would ramp up to $20.99 a share, before pulling back to double bottom support at $15.26. This is where I’d use weakness as an opportunity. One of the biggest reasons to like the CHPT stock is President Joe Biden. As the administration moves forward with a $5 billion plan to create a network of charging stations this provides opportunities for EV charging stocks. In fact, the plan calls for an EV charging station every 50 miles on U.S. highways, with a goal of 500,000 by 2030.
Even better, the company’s growth is accelerating. In its fourth quarter, CHPT saw a 90% increase in revenue to $80.7 million year over year from $42.4 million. For the full-year, revenues jumped 65% year over year to $242.3 million. With regards to fiscal 2023 guidance, the company anticipates revenue of $450 million to $500 million. The midpoint would represent 96% year over year growth.
ChargePoint also partnered with Goldman Sachs (NYSE:GS) Renewable Power. In fact, the new ChargePoint as a Service (CPaaS) product will allow “customers to pay for charging infrastructure as an operational expense and the turnkey allows customers to host a station at zero cost to them,” as noted by Evercore analyst James West, as reported by TipRanks. “Then there is the Volvo and Starbucks collaboration that involves a pilot program which will see up to 60 Volvo branded ChargePoint DCFCs installed at as many as 15 Starbucks locations,” added TipRanks.
Analysts seem to like the CHPT stock, too. In early March, R.F. Lafferty analyst Jaime Perez, for example, raised the firm’s target price to $34 from $29, with a “Buy” rating. Cowen (NASDAQ:COWN) analyst Gabe Daoud raised his firm’s target price to $27 from $24, as Citi analyst Itay Michaeli increased his firm’s price target to $17 from $15.
With accelerating growth, and plenty of bullish analysts, I’d use weakness as opportunity with CHPT.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.