ChargePoint Holdings Inc. (CHPT) PT Raised to $16 at BofA Securities

May 23, 2022 7:42 AM EDT
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Price: $14.40 --0%

Rating Summary:
    10 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 21 | New: 51
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BofA Securities analyst Ryan Greenwald raised the price target on ChargePoint Holdings Inc. (NYSE: CHPT) to $16.00 (from $14.00) ahead of F1Q23 earnings expecting mixed updates.

The analyst reiterated a Neutral rating, stating "Revenue growth should remain strong y/y with demand for charging infrastructure unabated despite electric vehicle manufacturing bottlenecks, look for margin pressure. Component procurement struggles plus higher operating expenses from ‘land & expand’ should lead to significant quarterly cash burn. Proceeds from the earlier convertible issuance should give the company some latitude to operate and grow the business. This is an advantage relative to more cash constrained peers, particularly those with high SPAC redemptions, into what we expect to be increasingly tight financing markets. We forecast F1Q23 revenue of $76.7Mn, +1% vs $76.1Mn Consensus and at the high end of management’s guidance of $72-$77Mn. While 1Q appears largely intact vs. expectations after the earlier reset around both revenue & expense profile for the year, we remain more cautious on any commentary around 2Q and margin implications to keep top line targets on track. Developments in China & Europe further complicating an already challenged procurement backdrop. Recall full-year gross margin guidance of 22-26% reflects ~600bps of impact from expected higher purchase price variance & logistics that management anticipated at the time of their call in early March."

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