Stifel maintains Blink stock Hold rating, $2 target amid 1Q results

Published 13/05/2025, 15:06
Stifel maintains Blink stock Hold rating, $2 target amid 1Q results

On Tuesday, Stifel analysts maintained a Hold rating and a $2.00 price target for Blink Charging Co. (NASDAQ: NASDAQ:BLNK) following the company’s first-quarter financial results for 2025. With a market capitalization of just $77.55 million, Blink Charging’s revenue showed a sequential decline and fell short of market expectations, continuing a concerning trend of -30.11% revenue decline over the last twelve months. Additionally, the company’s adjusted EBITDA was reported at a loss of $15.5 million, which did not meet Stifel’s projected loss of $7.4 million, contributing to a total EBITDA loss of $55.63 million for the past year.

Despite the lower-than-expected financial performance, Blink Charging saw a silver lining in its service revenue, which exceeded estimates and demonstrated growth both sequentially and year-over-year. The company anticipates this trend to continue throughout 2025. InvestingPro analysis reveals 12+ additional insights about Blink’s performance and future prospects.

Blink Charging’s management has been actively focusing on cost reduction strategies, which resulted in decreased operating expenses in the first quarter of 2025. While the company maintains a healthy current ratio of 2.15, indicating strong short-term liquidity, they also expect to see revenue growth in the second quarter and the second half of the year. Management’s commentary provided a more optimistic outlook for reaching breakeven EBITDA as the year progresses.

Nevertheless, Stifel’s analysts have expressed caution regarding Blink Charging’s near-term growth prospects. Their cautious stance is influenced by the current macroeconomic environment, which they believe could limit the company’s growth in the immediate future. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, though investors should note the significant -72.11% price decline over the past year. The firm’s analysts will continue to monitor Blink Charging’s performance and the broader economic conditions that may impact the company’s financial health.

In other recent news, Blink Charging Co. reported disappointing first-quarter 2025 financial results, missing both earnings per share (EPS) and revenue forecasts. The company posted an adjusted EPS of -$0.18, which was below the anticipated -$0.1346, while revenue came in at $20.8 million, significantly under the expected $30.76 million. This represents a notable decline from the $37.6 million revenue reported in the same quarter the previous year. Despite these challenges, Blink Charging noted a 29.2% year-over-year increase in service revenues and an 8% reduction in operating expenses.

The company is focusing on launching a new charger to address gaps in the value-oriented segment of the market. Additionally, Blink Charging is advancing its cost efficiency initiatives, as highlighted by CFO Michael Rama, who emphasized ongoing efforts to reduce operating expenses. Looking ahead, the company expects sequential revenue growth in the second quarter and aims to achieve adjusted EBITDA profitability as the year progresses. Analysts from firms like ROTH Capital and H.C. Wainwright have shown interest in Blink’s gross margins and future product developments. Blink Charging continues to execute its "Blink Forward" strategic plan, with an emphasis on long-term growth and profitability.

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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