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.
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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.
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