Crisis may soon morph into an opportunity for electric vehicle (EV) charging stocks. In recent turns of events, the renowned Shell initiated plans to divest about 1,000 gas stations to magnify its reach in expanding EV charging stations. By the year 2030, Shell aims to skyrocket the number of public charge-points to approximately 200,000, elevating from the current tally of about 54,000, according to the company’s projections.
Developments do not cease there. Ford Motor recently forged an alliance with Allego to introduce rapid EV charging to dealerships across Europe. A poignant observation by Reuters emphasized that the lack of charging infrastructure has been a significant hurdle stalling the widespread acceptance of EVs in Europe, encumbering the demand for electric cars. This partnership signifies a critical move towards addressing this existing bottleneck.
Furthermore, on the home front, the Biden Administration delineated plans for EV charging infrastructure along key U.S. freight corridors, supplementing this initiative with a substantial $623 million investment to bolster the EV charging grid network. In light of these significant developments, investors are urged to capitalize on the recent dip in EV charging stocks by focusing on three key players:
Diving Into EVgo (EVGO)
One standout contender in the EV charging stocks arena is EVgo (NASDAQ: EVGO). The stock’s recent rebound to $3.15 before readjusting to $2.31 presents a unique buying window for savvy investors. While EVGO remains ensnared in a prevailing downtrend, burgeoning catalysts may soon trigger a reversal in the short-term trajectory.
RBC Capital analysts have forecasted an enhanced profitability outlook for EVGO as the electric vehicle market broadens its horizons. With a definitive price target of $4, the firm highlighted, “The automotive industry is inexorably veering towards electrification, positioning EVgo to reap rewards from this secular trend,” as highlighted by a report from StreetInsider.com.
The latest earnings report has unveiled promising figures. In the most recent quarter, EVGO seized $50 million in sales, a significant stride from the $27.3 million revenue tally reported a year ago. CEO Badar Khan proudly affirmed, “EVgo witnessed a stellar 2023, driven by unwavering commitment to customer experience, digital-first strategies, and station development, culminating in a nearly tripled revenue resurgence,” as cited in Barron’s.
Spotlight on Blink Charging (BLNK)
Another standout player in the EV charging segment is Blink Charging (NASDAQ: BLNK). Despite recent setbacks following an unsuccessful double-top resistance breach, the stock is showing signs of resilience as it hovers around the $2.40 support threshold. While recent earnings performance may not be record-breaking, a patient approach is warranted as BLNK anticipates achieving positive EBITDA by December. President and CEO Brendan Jones exuded confidence, noting a robust revenue surge of 130% compared to the prior year, underpinned by a remarkable 671% uplift over 2021. Noteworthy milestones include fostering partnerships with distinguished entities like the United States Postal Service and Mack Trucks.
Envisaging BLNK retesting the $3.40 mark in the near future, an eventual rally back to its 2021 pinnacle of $64.50 remains an aspiration. D.A. Davidson analysts have recently reiterated a hold rating on BLNK stock, endorsing a $5 price target.
Evaluating Beam Global (BEEM)
Beam Global (NASDAQ: BEEM) is yet another compelling prospect in the EV charging landscape, currently trading at $6.76. The company recently secured a fresh patent from the U.S. Patent Office, encompassing Beam’s wireless charging technology.
CEO Desmond Wheatley expounded, “The EV ARC stands out as a rapid-deployment EV charging infrastructure solution. This newly patented technology enables drivers to effortlessly recharge their vehicles by simply parking on the EV ARC,” underscoring the user-friendly nature of the innovation.
Beam Global has notched a series of significant milestones, including a notable $4.8 million agreement with Homeland Security and a substantial $7.4 million deal with the U.S. Army. Not to mention, the company has clinched contracts with major metropolitan areas such as San Diego and Los Angeles. The recent acquisition of Serbian streetlight company Amiga signalizes Beam’s expansion ambitions across Europe. Moreover, a substantial $1 million order from the UK Ministry of Defense for 10 EV ARC EV charging systems further underscores the company’s growth trajectory.
Foreseeing a resurgence in BEEM stock, an initial bounce back to $8.50 is anticipated, with a long-term target set at least to $12. Harnessing the upward momentum in keeping with these developments could unlock substantial value for discerning investors.
Disclaimers: On the publication date, Ian Cooper did not hold any positions in the discussed securities. The views articulated herein solely represent the opinions of the author and are subject to InvestorPlace.com’s Publishing Guidelines.
For years, Ian Cooper, a seasoned contributor to InvestorPlace.com, has been dissecting stocks and options for web-based advisories, providing a robust analytical backdrop for informed decision-making.