EV charging infrastructure company ChargePoint (CHPT) is set to report its Q2 earnings results on September 3 after the market closes. Analysts are expecting earnings per share to come in at -$2.02 on revenue of $96.41 million. This compares to last year’s figures of -$3.20 and $108.54 million, respectively. It’s worth noting that CHPT has had a mixed track record when it comes to beating earnings. In fact, it has only exceeded estimates eight times during the past 16 quarters.
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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.
