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Investing.com - Oppenheimer has reiterated its Perform rating on ChargePoint Holdings Inc. (NYSE:CHPT), maintaining a cautious stance despite some positive developments in the company’s July quarter. According to InvestingPro data, the stock has declined over 68% in the past year, with particularly volatile price movements reflecting investor uncertainty.
ChargePoint delivered modest revenue upside and better-than-expected gross margins of 26.01% in its July quarter of 2025, according to Oppenheimer. However, the company’s revenue guidance for the October quarter fell 11% below Street expectations at the midpoint, contributing to the firm’s reserved outlook. InvestingPro data shows the company’s revenue has declined by 15.71% over the last twelve months, with EBITDA remaining negative at -$201.2M.
The research firm expressed encouragement regarding ChargePoint’s subscription revenue returning to growth and the steady progress on the company’s collaboration with Eaton (ETN). Oppenheimer also viewed the company’s cash management positively, noting ChargePoint’s opportunity to further optimize its balance sheet through reduced inventories.
Oppenheimer highlighted that ChargePoint has not yet tapped its $150 million revolver, demonstrating financial discipline. The firm also acknowledged the company’s improved operational efficiency and believes ChargePoint is pursuing the correct strategy by investing in portfolio evolution.
Despite these positive factors, Oppenheimer remains cautious on ChargePoint shares due to the delay in returning to top-line growth and reaching EBITDA break-even, key milestones that would signal a more sustainable financial trajectory for the electric vehicle charging company. For a deeper understanding of ChargePoint’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, along with 12 additional ProTips available on InvestingPro.
In other recent news, ChargePoint Holdings Inc. reported its second-quarter earnings, revealing a revenue of $99 million, which slightly exceeded the forecasted $96.02 million. However, the company faced a significant shortfall in its earnings per share (EPS), reporting -$2.85 compared to the anticipated -$0.12. This discrepancy in EPS has contributed to a mixed outlook for the company. Following these results, Needham reiterated its Hold rating on ChargePoint, highlighting the company’s progress in margin improvement and cost discipline, but also noting subdued near-term demand trends. Meanwhile, JPMorgan lowered its price target for ChargePoint to $8.00 from $9.00, maintaining an Underweight rating. This adjustment comes after ChargePoint withdrew its fiscal year 2026 profitability guidance due to market uncertainties and delayed its expectations to reach EBITDA breakeven in the fourth fiscal quarter. These developments reflect a cautious investor sentiment as ChargePoint navigates through its financial challenges.
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