Electric vehicle infrastructure company ChargePoint (NYSE: CHPT) recently revealed that it has entered into a strategic partnership with a logistics company, Gatik, to develop an electrical ecosystem for its autonomous electric fleet of trucks.
Following the news, shares of the company gained 1.1% on Monday. The stock pared its gains marginally to close at $18.60 in the extended trading session.
Gatik’s partnership with ChargePoint will allow companies — seeking to reduce their carbon footprint and make their operations more sustainable — to decarbonize their operations to some extent and achieve their sustainability goals.
Through this partnership, Gatik will have access to ChargePoint’s nationwide charging network and fleet-specific software. Further, ChargePoint’s infrastructure stands to benefit by getting access to Gatik’s vehicle depots and customer locations across existing and emerging markets.
Management Commentary
The Vice-President of Fleet at ChargePoint, Rich Mohr, said, “Our partnership with Gatik will help more fleets to realize their e-mobility and decarbonization goals. ChargePoint has proven experience across multiple customer applications and use cases. Together, ChargePoint and Gatik will provide industry-leading infrastructure and technologies for forward-thinking fleets.”
Stock Rating
Recently, Bank of America Securities analyst, Ryan Greenwald reiterated a Hold rating on the stock with a price target of $16, which implies downside potential of 14.3% from current levels.
According to the analyst, the company’s revenue prospects look solid, as he expects the same to grow 96% year-over-year in Fiscal Year 2023. However, margins are likely to remain under pressure due to supply chain issues.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on eight Buys and four Holds. The CHPT average price target of $24.50 implies that the stock has upside potential of 31.2% from current levels. Shares have declined 10.8% over the past year.
Negative Sentiment
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on CHPT, as 3.2% of portfolios tracked by TipRanks increased their exposure to CHPT stock over the past 30 days.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
Related News:
Tesla Considers Another Stock Split, Shares Up 5%
KKR & GIP close $15.1B CyrusOne Acquisition
HP to Snap Up Plantronics for $3.3B; Shares Slip 1.5% Pre-Market
