Blink stock holds as analyst maintains buy rating and $8 target

Monday - H.C. Wainwright reaffirmed its Buy rating and $8.00 price target for Blink Charging Co. (NASDAQ:BLNK), following the company’s announcement of its fourth-quarter results for 2024. The stock, currently trading near its 52-week low of $0.87, appears undervalued according to InvestingPro analysis, despite showing significant volatility with a beta of 2.86. Blink Charging reported a year-over-year decline in quarterly revenue, with figures falling to $30.2 million in the fourth quarter of 2024 from $42.7 million in the same period the previous year, marking a 29.3% decrease.

Despite the revenue drop, the company saw an increase in revenues from its company-owned charging stations, which rose to $6.2 million in the fourth quarter of 2024, up from $4.5 million in the fourth quarter of 2023. The blended gross profit for the quarter stood at $7.5 million, or 25.0% of revenues, slightly above the 24.8% of revenues, or $10.6 million, reported in the fourth quarter of 2023. InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.52, though analysts anticipate a 10% revenue decline for the current year.

The gross margins for products were lower at 17.3% in the fourth quarter of 2024, compared to 31.0% in the same quarter of the previous year. Blink Charging noted that blended margins could fluctuate each quarter based on the product mix. Operating expenses, excluding a significant goodwill impairment charge of $57.9 million, were reduced to $23.2 million from $27.8 million year-over-year.

The company’s net loss widened significantly to $73.5 million, or $0.73 per share, in the fourth quarter of 2024, from a loss of $19.7 million, or $0.27 per share, in the fourth quarter of 2023. However, excluding the goodwill impairment charge, the adjusted net loss for the fourth quarter would have been $0.15 per share. In light of these results, H.C. Wainwright’s analyst reiterated the Buy rating and $8 price target, indicating confidence in the stock’s potential. For deeper insights into BLNK’s financial health and growth prospects, including 18 additional ProTips and comprehensive valuation metrics, explore the full company analysis available on InvestingPro.

In other recent news, Blink Charging Co reported its fourth-quarter 2024 earnings, showcasing a slight beat on earnings per share (EPS) but falling short on revenue expectations. The company posted an EPS of -$0.15, slightly better than the forecasted -$0.16, while revenue came in at $30.18 million, missing the anticipated $31.76 million. Despite the revenue miss, Blink Charging achieved a 20% sequential increase in quarterly revenue and significantly reduced its cash burn and operating expenses throughout 2024. The company also reported substantial growth in its DC fast charger revenue, with nearly a 500% increase over the year. Furthermore, Blink Charging experienced a decline in full-year revenues to $126.2 million from $140.6 million in 2023, but it improved its adjusted loss per share to $0.61 for the full year from $1.42 the previous year. Analysts from firms like Roth Capital Partners (WA:CPAP) have noted Blink Charging’s strategic focus on expanding its owner-operator business model and non-dilutive capital sources. The company is also preparing for the Envoy Technologies IPO and exploring potential acquisition opportunities in Europe, emphasizing its commitment to long-term growth and profitability.

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