Benchmark maintains Buy rating on ChargePoint stock with $3.00 target

On Wednesday, Benchmark analysts reiterated their Buy rating on ChargePoint Holdings Inc. (NYSE:CHPT) with a steadfast price target of $3.00. ChargePoint, a leading electric vehicle (EV) charging network, reported fourth-quarter fiscal year 2025 revenues that slightly exceeded expectations, coming in at $102 million against the analyst’s projection of $100.6 million and the consensus estimate of $101.6 million. According to InvestingPro data, the company’s market capitalization stands at $316 million, with the stock currently trading below its Fair Value despite a challenging year that saw revenue decline by 20.7%.

The company’s commitment to achieving adjusted EBITDA profitability by fiscal year 2026 aligns with Benchmark’s financial model, though InvestingPro data shows current EBITDA at -$223 million. ChargePoint’s gross margins saw a notable improvement, rising to 28% from 23% in the previous quarter, above the trailing twelve-month margin of 22.5%. This was attributed to an increase in software subscription revenues, which bolstered the company’s financial standing. InvestingPro analysis reveals 14 additional key insights about ChargePoint’s financial health and market position.

Despite the uncertainties surrounding regulations and the timing of market demand, analysts at Benchmark expressed confidence in ChargePoint’s growth prospects. The company’s network size, which includes 342,000 managed ports, along with improved cash burn and cost efficiencies, were cited as key factors that would likely contribute to ChargePoint’s path to adjusted EBITDA profitability in fiscal 2026. While InvestingPro data indicates the company maintains a healthy current ratio of 1.94, suggesting adequate liquidity to meet short-term obligations, investors should note the rapid cash burn rate identified in ProTips.

The positive outlook for ChargePoint is underpinned by the company’s strategic positioning and operational improvements. As the EV market continues to expand, ChargePoint’s extensive charging infrastructure and the increasing adoption of software solutions are expected to drive the company’s revenue growth and move it towards its profitability goals. Benchmark’s maintained Buy rating and price target reflect their confidence in ChargePoint’s ability to capitalize on these market opportunities. For a comprehensive analysis of ChargePoint’s financial health and growth potential, access the detailed Pro Research Report available exclusively on InvestingPro.

In other recent news, ChargePoint Holdings Inc. reported its fourth-quarter and full-year 2025 earnings, showcasing a slight revenue beat over forecasts. The company achieved a revenue of $102 million for the quarter, surpassing the anticipated $101.04 million. ChargePoint’s gross profit reached $28.7 million, exceeding Stifel’s estimate, and the company improved its non-GAAP gross margin by 4 percentage points sequentially. Despite posting an EPS of -$0.14, which aligned with market expectations, ChargePoint’s stock experienced a notable rise in aftermarket trading. The company ended the quarter with $225 million in cash, an increase of $5 million from the previous quarter, and reported a significant reduction in cash used for operating activities. ChargePoint’s management has reiterated their guidance to achieve positive non-GAAP adjusted EBITDA during fiscal 2026. Stifel analysts maintained a Hold rating on the company’s shares, reiterating a price target of $2.00. ChargePoint’s strategic initiatives include expanding its charging network and enhancing product offerings, aiming for further margin expansion throughout the year.

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