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Amazingly, ChargePoint’s (NYSE:CHPT) revenue acceleration still hasn’t been reflected in CHPT stock. This isn’t a problem, though, as it’s just an opportunity to take a share position in ChargePoint before the investing community realizes the company’s true value. When that happens someday, ChargePoint’s patient shareholders should reap huge benefits.
ChargePoint is among the earliest players in the electric vehicle (EV) charging space. The company has been in business for over 15 years and has delivered more than 158 million charges.
By and large, investors don’t fully appreciate ChargePoint’s future prospects. Yet, a big-bank analyst group specifically picked ChargePoint for its growth potential. Over the long run, this EV charging play could definitely be a multi-bagger.
What’s Happening With CHPT Stock?
Surprisingly, CHPT stock has fallen from more than $45 to $10 and change. Given this price trajectory, one might assume that ChargePoint isn’t generating much revenue.
That’s actually not the case, however. During the fourth quarter of fiscal 2023, ChargePoint generated revenue of $153 million, up 93% year over year (YOY). Furthermore, ChargePoint reported revenue of $468 million for full fiscal 2023, up 94% YOY.
ChargePoint CEO Pasquale Romano boasted, “We just doubled the company in a year.” He has every right to brag, as ChargePoint’s revenue acceleration is truly impressive.
Moreover, ChargePoint’s management expects the company to continue recording strong sales in the near term. For the current quarter, ChargePoint anticipates revenue of $122 million to $132 million, which would represent a 56% YOY increase. At that rate, the company should expand rapidly and CHPT stock ought to double or more.
An Analyst Group Recommends Patience With CHPT Stock
The key to success as a ChargePoint investor is patience — or at least, that’s what one notable analyst group seems to suggest. In particular, JPMorgan Chase analysts wrote that they “continue to see upside in [ChargePoint] shares for patient investors.”
According to TheFly, JPMorgan Chase analyst Bill Peterson reiterated his “overweight” rating on CHPT stock after hosting investor meetings with ChargePoint’s management. Peterson described ChargePoint as being “among a select few charging companies that can grow into profitability and thrive in the coming years.”
Indeed, with such robust revenue growth, profitability might someday be possible for ChargePoint. Achieving a profitable profile could be the catalyst that sparks a share-price rally and converts ChargePoint’s critics into long-term investors.
Encouragingly, the JPMorgan Chase analysts identified ChargePoint as one of their “top picks and preferred name in the EV charging space.” That’s quite a compliment from this well-regarded analyst group.
What You Can Do Now
For the time being, investors are ignoring ChargePoint’s powerful revenue growth. If the company continues to increase its sales, however, financial traders should eventually push the ChargePoint share price higher.
Plus, if ChargePoint achieves profitability, the bullish thesis will be undeniable. Therefore, CHPT stock absolutely has 100% or greater upside potential, and investors ought to consider a moderately sized share position today.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.