DA Davidson cuts estimates on Chargepoint (CHPT), maintains Buy

DA Davidson reiterated a Buy rating on ChargePoint Holdings (NYSE: CHPT) and cut their 12-month price target on the stock to $15.00 (From $18.00) after adjusting estimates through their FY25 modeling period.

Analyst Matt Summerville reduced DA Davidson’s top-line outlook for FY24/FY25, but reiterated his view that the business will reach adjusted EBITDA and FCF positivity towards the end of calendar 2024, with EBITDA losses expected to compress by approximately two-thirds by FYE24 when compared to F1Q24.

DA Davidson now estimates FY24/25 revenue will be t $667M/$919M respectively, compared to $701M/$1,051M prior. This includes a F2Q24E (July) top-line outlook of $156M (previously $164M) vs. $108M in the prior year period.

Summerville wrote in a note, “We continue to find current CHPT share levels an attractive risk/reward proposition, with our LT thesis intact. That said, we cannot ignore ongoing multiple compression in the group and we reduce our PT from $18 to $15, which represents 6.0x EV/revenue based on our FY25 (CY24) top-line forecast.”

Shares of CHPT are down 3.31% near end of day trading on Monday.

By Michael Elkins | [email protected]

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