Connect to the Transcontinental EV Infrastructure Market with ChargePoint

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Back in the fourth quarter of 2021, when the “infrastructure” (infrastructure) bill made headlines, the California-headquartered electric vehicle (EV) charging equipment company ChargePoint (NYSE:CHPT) certainly looks like a solid buy. The sky is the limit for CHPT stocks, it seems.

However, times have changed dramatically since then. Lately, future markets like EV chargers have been abandoned in favor of safe-minded investments.

In a time of geopolitical turbulence and changing central bank policies, seeking safe havens is understandable. However, investors may have treated CHPT stocks too harshly in their quest for portfolio protection.

At this time, we will examine the technical breakdown and determine if ChargePoint stock is still investable. Just as importantly, we’ll take a look at how the company has been performing recently – and when all is said and done, you might be surprised to learn about ChargePoint’s progress.

A Closer Look at CHPT Saham Stocks

Last year, when the overall picture was much more bullish, $30 was the set resistance level for CHPT stocks. That’s because the stock has several times reached $30, but buyers are always turned down.

It’s been said that resistance levels are ultimately meant to be broken, but ChargePoint shareholders haven’t seen this principle in action lately. Frustratingly, the stock started in 2022 at around $20 but has been down all year so far.

This is a problem because ChargePoint does not pay any dividends. Therefore, investors must rely on the appreciation of the stock price to make a profit.

In early March, CHPT stock was trading at $14 and changing, and it doesn’t seem to be moving fast. Can we find any reason, then, to believe that the stock will regain $20 and eventually $30?

Optimism is justified

As ChargePoint has shown, the cumulative total investment in EV charging infrastructure in the US and Europe is expected to reach $60 billion by 2030, and $192 billion by 2040.

Given this, ChargePoint should receive better treatment on Wall Street. In a rapidly growing addressable market, ChargePoint is making a mark and generating strong revenue.

Need proof? No problem: during the fourth fiscal quarter of 2021, ChargePoint earned $80.7 million in revenue, for a spectacular 90% year-over-year increase.

Obviously, the EV revolution is alive and well. During the same quarter, ChargePoint reported network charging system revenue of $59.2 million, up 109% year-on-year; and subscription revenue of $17.2 million, up 57% year on year.

Given the magnitude of this top-line growth, it is understandable that ChargePoint remains optimistic for the future. Accordingly, the company issued ambitious guidance of $72 million to $77 million for the first fiscal quarter ending April 30, 2022.

Taking Chances in France

Importantly, ChargePoint’s vision for the EV revolution has no geographic boundaries. Truly, the company is trying to establish an international market presence.

As proof, ChargePoint has announced a joint venture with sonpar a subsidiary of Sonepar France. With a network of 100 brands spanning 40 countries, Sonepar specializes in the distribution of electrical products, solutions and related services.

In its press release, it states that as of December 31, 2021, there are 53,667 “places to charge” (EVs, presumably) open to the public in France. Together, ChargePoint and Sonepar France are trying to add 1,400 to that figure.

Plus, in the bigger picture, the Sonepar collaboration will increase ChargePoint’s overall market presence in the coming year. Thus, “up to 50% of enterprise EV chargers (sold for commercial use) will be cloud-connected by 2025 providing a leading service to ChargePoint users.”

Underline

Of course, there’s no way to guarantee that CHPT stock will return to $30 this year, or forever.

However, the signs are showing recovery. For one thing, ChargePoint’s top-line data is undeniable and the company’s earnings guidance is upbeat.

In addition, ChargePoint is setting its flag on more than one continent, and thus establishing itself as a competitive multi-national business.

Therefore, it is reasonable to conclude that CHPT shares deserve a re-rating. $30 may or may not be on the card, but there’s no denying ChargePoint’s status as a champion of the vehicle electrification movement.

As of the date of publication, David Model does not have (either directly or indirectly) a position in the securities mentioned in this article. Opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.

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