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Oct 20, 2024

ChargePoint Stock (NYSE:CHPT) Powers Up as Firm Expands EV Charging Network - TipRanks.com

ChargePoint Holdings (CHPT) stock is trending upward today on news that it is expanding its EV charging network. In a statement released yesterday, the company announced that its new low-cost charging

ChargePoint Holdings (CHPT) stock is trending upward today on news that it is expanding its EV charging network. In a statement released yesterday, the company announced that its new low-cost charging solution is now available. This Level 2 EV charger is priced at $699, and ChargePoint believes it will help more fleets make the switch to full electrification by lowering the cost of the technology needed for it.

News of this EV charging progress has been pushing ChargePoint stock up for most of the day. As of this writing, shares are up 3% and look primed to continue this positive trajectory. The past six months have been highly volatile as the penny stock fights to stay above $3 per share. However, this may signal a turning point for the troubled company.

The electric vehicle market may be struggling right now, but that doesn’t mean the demand for charging solutions is subsiding. Between 2024 and 2032, it is projected to expand at a CAGR of 27%. This has created ample demand for well-known companies in the space, such as ChargePoint and EVgo (EVGO), who have taken steps to secure a significant share of the market.

ChargePoint CEO Rick Wilmer discussed the positive implications of the company’s new charging solution. “We’re making the hardware more affordable, and when combined with our powerful fleet software platform, the offering can meet the charging needs of fleets of all sizes to optimize their savings,” he states.

Turning to Wall Street, analysts have a Hold consensus rating on CHPT stock based on five Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Despite declining 60% in its share price over the past year, the average CHPT price target of $2.53 per share implies 87.4% upside potential.

See more CHPT analyst ratings

That type of positive forecast may offer hope to traders who don’t mind some risk. But given ChargePoint’s history of instability and its status as a penny stock, many investors will likely still approach it with caution until CHPT stock can climb back above the $5 mark. It doesn’t help that ChargePoint reported disappointing Q2 earnings in September 2024.