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On Friday, Stifel analysts maintained their Hold rating on Blink Charging Co. (NASDAQ:BLNK) with a steady price target of $3.50. The stock, currently trading at $0.92 and near its 52-week low, has seen its market capitalization decline to $92.47 million. According to InvestingPro analysis, the company appears undervalued at current levels. Blink Charging reported an increase in revenue that was in line with consensus estimates, with year-over-year growth of 15.13%. However, the company’s adjusted EBITDA loss of $10.6 million did not meet Stifel’s expectation of a $7.8 million loss.
Stifel analysts highlighted that, excluding certain one-time factors, Blink Charging’s gross margins surpassed their projections, reaching 35.9% in the last twelve months. The company maintains a healthy balance sheet with a current ratio of 2.52 and holds more cash than debt. Additionally, the management team at Blink Charging has been actively working on reducing costs. The company’s leadership has reiterated their commitment to cost-saving measures and driving revenue growth. They have also indicated a clearer path towards achieving breakeven EBITDA as 2025 progresses.
Despite these positive notes, Stifel remains cautious about Blink Charging’s stock. Their caution stems from the limited growth opportunities in the near term. The analysts are looking for more concrete signs of improvement in the second half of 2025 before changing their stance on the stock.
The company’s focus on cost reduction and revenue expansion is part of a strategic effort to reach a financial equilibrium. Blink Charging’s management has expressed confidence in their ability to navigate towards a breakeven EBITDA, a key financial milestone that would indicate a balance between the company’s earnings and expenses.
Investors and market watchers will likely keep an eye on Blink Charging’s performance in the coming months, particularly as the company aims to demonstrate tangible improvements in its financial health by the latter half of 2025. InvestingPro subscribers have access to 18 additional key insights about Blink Charging, including detailed analysis of its growth prospects and financial health metrics. For comprehensive research and Fair Value estimates on over 1,400 US stocks, including Blink Charging’s detailed Pro Research Report, consider upgrading to InvestingPro.
In other recent news, Blink Charging Co. reported its fourth-quarter 2024 earnings, revealing revenues of $30.2 million, slightly exceeding some analysts’ expectations but missing others. The company’s earnings per share (EPS) were reported at -$0.15, a slight improvement over the estimated -$0.16. Despite a 29.3% year-over-year decline in quarterly revenue, service revenues showed a significant increase, rising by 24% to $9.8 million. Blink Charging’s full-year revenue dropped to $126.2 million from $140.6 million in 2023, yet the company managed to reduce its adjusted loss per share from $1.42 in 2023 to $0.61 in 2024.
Benchmark analyst Mickey Legg maintained a Buy rating on Blink Charging but lowered the price target to $2.00 from $5.00, citing stalled product demand amid economic uncertainty. Meanwhile, H.C. Wainwright reaffirmed its Buy rating and $8.00 price target, expressing confidence in the stock’s potential despite the revenue decline. Blink Charging also highlighted a substantial year-over-year growth in its DC fast charger revenue, achieving nearly a 500% increase in 2024. The company anticipates service revenues to continue rising in 2025, with product revenue expected to stabilize in the first half and improve in the second half of the year.
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