ChargePoint (CHPT) Stock: Buy Before Earnings or Brace for Impact?
ChargePoint revs up for earnings—bulls see growth, bears see another EV hype cycle.
Why This Earnings Could Shock The Street
ChargePoint isn't just another EV play—it's betting big on infrastructure while legacy automakers scramble. The numbers better justify the valuation though, or this could be another 'future potential' story that leaves investors stranded.
The Infrastructure Play Everyone's Ignoring
While Tesla gets headlines, ChargePoint builds the plugs. Their network expansion could print money if adoption accelerates—but that's a big if. Execution matters more than vision right now.
Risks: More Than Just Charger Anxiety
Supply chains remain messy, competition's heating up, and let's be real—the entire sector trades on sentiment rather than fundamentals. Another 'strategic investment' quarter without clear profitability? Wall Street's patience wears thinner than a low battery warning.
Bottom Line: ChargePoint could either juice portfolios or leave them needing a tow. Smart money watches this one from the sidelines—unless you enjoy gambling with earnings calls dressed up as investment theses.
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And arguments made by analysts don’t really inspire too much hope. In fact, JPMorgan, led by analyst Bill Peterson, recently kept its Sell rating on the stock and set a $9 price target, which equates to more than 20% downside risk from current levels. Indeed, the firm believes that ChargePoint’s partnership with Eaton could eventually lead to an increase in revenue. However, it also expects the company to keep facing challenges due to growing competition and the commoditization of EV charging services, which can make it harder to differentiate.
This is because, as more players enter the market, maintaining pricing power and customer loyalty may become increasingly difficult. Indeed, as demonstrated in the image below, ChargePoint has already seen a decrease in its Network Charging Segment, which has fallen by more than half from its peak in January 2023.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. Indeed, the at-the-money straddle suggests that options traders expect a large 15.4% price MOVE in either direction.
Is CHPT Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on CHPT stock based on one Buy, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CHPT price target of $17.07 per share implies 51.7% upside potential. At the same time, TipRanks’ AI analyst has a Neutral rating with a $11.50 price target.
