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Analysts told investors that they are upgrading the stock, which is trading at all-time lows, as they believe the company has a line-of-sight cash inflection in 2024.
“The reason for our upgrade is simple – CHPT has proof of execution, line of sight to profitability, and with its story largely unchanged since the PIPE offering, valuation is compelling against shares making all-time lows,” wrote analysts.
“With our updated model, we second management’s assertion of a cash inflection in 4QCY24,” analysts added. “We estimate $19mm in operating cash (pre working capital) in 4Q24 and >$100mm in CY25. While we estimate ~$300mm in operating cash burn in 2023/24 ($200mm in CY23), we believe that $295mm in cash plus $105mm in short-term notes limits CHPT’s need to tap capital markets to reach free cash generation.”
BofA analysts went on to state that CHPT is a “best-in-class way to play the EV charging theme,” with its scale and diversity a key to the firm’s belief in the company’s sustainable growth.
