UBS said electric vehicle charging station provider ChargePoint could make a significant recovery. Analyst Robert Jamieson has a buy rating on the stock. He assigned a $9 price target, implying a potential upside of 85.6% from Tuesday’s closing price. UBS said the deteriorating sentiment around ChargePoint created an “attractive risk/reward” situation for investors. Shares have fallen more than 49% this year. Earlier this month, the company missed its fiscal second-quarter revenue forecast and announced it would cut about 10% of its global workforce. ChargePoint currently has the largest market share for Level 2 charging ports, which provide more power in less time than Level 1 charging ports. UBS noted that the company has 33,000 charging stations. The company expects L2 charging ports, such as ChargePoint’s Home Flex port, to eventually account for more than 90% of the installed base in 2030, up from about 80% today. “We believe L2 chargers will play a key role in driving EV adoption in the U.S.,” Jamison wrote in a note on Tuesday. “This charging type takes advantage of the vehicle’s dwell time, so it is deployed where EVs will be parked. hours in an environment.” Given the Biden-Harris administration’s goal of building 500,000 public electric vehicle chargers across the country by 2030 and having electric vehicles account for at least 50% of new vehicle sales, UBS expects EV Charging deployment will accelerate to meet expected future demand. UBS forecasts that port demand will grow at a compound annual growth rate of 40% by 2030, saying deployments will need to more than double by 2030 to about 45,000 units per year, compared with the average annual deployment between 2019 and 2022 The quantity is 20,000 units. —CNBC’s Michael Bloom contributed to this report.
