The analyst sees the company as the market leader in level 2 (L2) charging solutions, with 45% market share of L2 stations in the U.S.

Dendrinos is bullish on CHPT's strategy and believes it is well positioned with the right products in the right markets to capitalize on the opportunity from EV adoption rates and charging infrastructure demand.

The analyst notes that the company's capital/asset-light strategy allows it to focus on product development (hardware and software), customer acquisition, and service quality. 

Dendrinos thinks CHPT's product differentiation is largely limited to equipment and service quality, and it is excelling in both areas, with ~60% of revenues coming from repeat business.

The analyst estimates revenue and adjusted EPS loss of $619.3 million and $(0.61) in FY24 and $865.5 million and $(0.18) in FY25.

Price Action: CHPT shares are trading lower by 8.5% at $5.76 on the last check Friday.