UBS maintains Neutral on ChargePoint, holds $0.65 target

On Monday, UBS reaffirmed its Neutral stance on ChargePoint Holdings Inc. (NYSE:CHPT), maintaining a price target of $0.65. The company’s first-quarter financial results for fiscal year 2026 revealed an adjusted EBITDA loss of $201.2 million that was wider than anticipated, along with revenue forecasts for the same period that fell short of expectations. According to InvestingPro data, the company’s market capitalization currently stands at $354.55 million, with the stock trading significantly below its 52-week high of $2.44. In response to these outcomes, UBS has adjusted its future sales projections for ChargePoint, decreasing them to $421 million, $535 million, and $688 million for fiscal years 2026, 2027, and 2028 respectively. These figures were previously set at $442 million, $587 million, and $757 million. InvestingPro analysis reveals that four analysts have recently revised their earnings downward for the upcoming period, while the company’s revenue has declined by 15.71% in the last twelve months.

The revised sales estimates have consequently led to alterations in the adjusted earnings per share (EPS) forecasts for the fiscal years 2026 to 2028. UBS’s commentary reflected a cautious outlook on ChargePoint’s shares, citing concerns over the company’s persistent cash burn. The firm also expressed skepticism about ChargePoint’s ability to significantly reduce costs further as a means to achieve profitability. InvestingPro data supports this view, showing an overall Financial Health Score of 1.88 (rated as ’FAIR’), with particularly concerning metrics in profitability and cash flow. Discover more detailed insights and 13 additional ProTips with an InvestingPro subscription.

ChargePoint’s recent financial performance has prompted UBS to reassess the company’s trajectory, with a particular focus on its revenue and earnings potential. The firm’s analysis suggests that ChargePoint may face challenges in improving its financial health through cost reductions alone. Based on InvestingPro’s Fair Value analysis, the stock currently appears to be undervalued, though investors should note the company’s high debt-to-equity ratio of 2.72 and negative return on assets of -26.93%.

Investors are keeping a close watch on ChargePoint’s financial indicators, as these provide critical insight into the company’s operational efficiency and long-term viability. UBS’s maintained Neutral rating indicates a wait-and-see approach, reflecting uncertainty about ChargePoint’s ability to turn around its financial performance in the near future.

ChargePoint Holdings Inc., a leading player in the electric vehicle charging industry, has been under scrutiny as it navigates the rapidly evolving EV market. The company’s financial health and strategic decisions are pivotal in maintaining its position in the competitive landscape.

In other recent news, ChargePoint Holdings Inc. reported its first-quarter fiscal year 2026 results, revealing a revenue of $98 million, which marked a 9% decrease compared to the previous year. This revenue figure fell slightly short of the market expectations of $101 million. ChargePoint’s management has projected revenue for the second quarter to range between $90 million and $100 million, which is below Wall Street’s estimate of $108 million. Oppenheimer analysts have maintained a Perform rating on ChargePoint, noting the company’s efforts to adapt to industry changes and its strategic partnership with Eaton (NYSE:ETN) as potential growth drivers. In contrast, Goldman Sachs reiterated a Sell rating, expressing concerns over slower electric vehicle growth and broader economic challenges that could impact ChargePoint’s profitability targets. ChargePoint’s recent earnings call highlighted a slight beat in earnings per share, with an EPS of -$0.12, surpassing the expected -$0.13. The company continues to focus on expanding its global charging network, reporting management of 352,000 ports, and emphasizes its partnership with Eaton to enhance its market position. Despite these efforts, analysts from Goldman Sachs remain cautious, citing potential risks from changing government policies and macroeconomic trends.

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