Barclays cuts Blink Charging price target to $1.50, keeps rating

Published 04/02/2025, 12:56
Barclays cuts Blink Charging price target to $1.50, keeps rating

On Tuesday, Barclays (LON:BARC) made a significant adjustment to its financial outlook for Blink Charging Co. (NASDAQ:BLNK), reducing the price target from $3.00 to $1.50, while maintaining an Equalweight rating on the company’s stock. The revision comes as part of preparation for Blink’s fourth-quarter 2024 earnings announcement, with Barclays updating its model to reflect the latest information and market conditions. The stock currently trades at $1.18, near its 52-week low of $1.15. According to InvestingPro data, analyst targets for the stock range from $1.70 to $8.00, with 13 additional real-time insights available to subscribers.

Christine Cho of Barclays highlighted the rationale behind the new price target, noting a reduction in revenue estimates across the board for Blink Charging. The firm’s forecast for fiscal year 2024 now stands at $125 million, a decrease from the previous $167 million estimate and at the lower end of the company’s own revenue guidance of $125-$135 million. This adjustment is also in line with the consensus estimate of $126 million. The company generated revenue of $138.73 million in the last twelve months, maintaining a gross margin of 35.9%.

Looking further ahead, Barclays also revised its revenue projections for fiscal years 2025 and 2026. The firm now expects Blink Charging to generate $161 million in revenue for FY25, down from an earlier estimate of $230 million, and $208 million for FY26, reduced from the previous forecast of $314 million. These figures compare to consensus estimates of $155 million and $212 million, respectively.

Despite the lowered revenue expectations, Barclays has maintained its gross margin estimates within similar ranges as previously predicted. Additionally, the firm anticipates Blink Charging to achieve positive Adjusted EBITDA by the first quarter of 2026. This projection aligns with the consensus on timing, although it is slightly later than the second half of 2025 guidance provided by Blink’s management.

The updated financial model and price target reflect Barclays’ assessment of the current challenges facing the electric vehicle (EV) charger sales market, indicating a more cautious outlook for Blink Charging’s near-term financial performance. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, despite market challenges.

In other recent news, Blink Charging Co. has made significant strides in expanding its electric vehicle (EV) charging infrastructure. The company has launched 76 EV charging ports at 23 Royal Farms convenience store locations in Maryland and Delaware, with plans to exceed 100 charging ports soon. This initiative aligns with Blink’s broader strategy to promote EV adoption through key strategic partnerships.

Simultaneously, Blink Charging has reported a revenue growth of 15% in the last twelve months. Despite challenging market conditions and concerns by Needham and UBS, the company has improved its gross margin to 36%, up from 29% the previous year, and anticipates positive adjusted EBITDA in the second half of 2025.

In leadership developments, Michael Battaglia has been appointed as the new CEO, bringing valuable experience from his successful tenure as the Chief Operating Officer and the automotive industry. Martha J. Crawford, with her vast experience in strategic growth and low-carbon energy sectors, has also been added to the Board of Directors.

Furthermore, Blink Charging has secured a three-year contract to enhance the EV charging infrastructure at Princess Royal University Hospital, involving the installation of 41 EV chargers and 21 contactless payment terminals. Lastly, a strategic partnership with ChargeHub aims to expand Blink’s public EV charger access, enhancing user experience by integrating Blink’s public EV chargers into ChargeHub’s Passport roaming hub.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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