Analysts improve forecasts for ChargePoint Holdings shares on the eve of the report
Electric vehicle charging station operator ChargePoint Holdings Inc. (CHPT) will report for the second fiscal quarter next week. The expectations of Wall Street analysts are generally positive, and some have even improved their forecasts for the company’s shares. According to the projections of ChargePoint Holdings management, revenue will grow by 80% year-on-year in the second fiscal quarter. But it should bear in mind that the company has exceeded its forecasts for the last few quarters. JP Morgan analysts recently raised the target price for ChargePoint Holdings shares from $18 to $20.
At the same time, experts emphasize that inflation will continue to pressure the company’s margins. The Inflation Reduction Act, recently signed by US President Joe Biden, will give some impetus to business. The law offers significant tax benefits to people who buy eligible electric vehicles that will contribute to the development of the industry and benefit substantial players in it, including ChargePoint Holdings.
Earlier, Bank of America analysts also raised the target price of ChargePoint Holdings shares from $14 to $15.5 per share due to the above the law. The investment bank also predicts that ChargePoint Holdings will become one of the beneficiaries of the new measures to combat inflation. ChargePoint Holdings has more than 188 thousand charging points for electric vehicles as of the end of its first fiscal quarter. The company is among the foremost authorities in electric vehicle charging systems. It continues to make substantial network growth investments, preventing it from turning a profit.
