Blink Charging Has Upside Potential Despite Slowed Bookings: Analyst

Zinger Key Points
  • Needham analyst Chris Pierce cuts Blink Charging's price target to $6 but maintains Buy rating.

Needham analyst Chris Pierce cut the price target of Blink Charging Co. BLNK from $7 to $6 while retaining the Buy rating following the first quarter earnings release.

Yesterday, Blink Charging reported quarterly adjusted losses of 13 cents per share which beat the analyst consensus estimate of losses of 24 cents. Quarterly sales of $37.57 million beat the analyst consensus estimate of $33.38 million.

Blink maintained its target of revenues between $165 million and $175 million and reiterated its target of achieving a positive adjusted EBITDA run rate by December 2024.

The analyst sees the company as the best-positioned as the EV charging business with conservative FY24 gross margin guidance vs first quarter results and levers to pull as they restructure their lines of business and trim operating expenses.

Also, Pierce highlights that Tesla, Inc. TSLA news provides upside opportunities. Consequently, the analyst sees Blink as well positioned to win any North American Level 2 business thanks to their vertical integration and Level 2 industry leader ChargePoint Holdings, Inc.‘s CHPT recent comments that large customers are now opting for multi-sourcing charging hardware.

However, the analyst writes that Blink cited a slowing of bookings vs their expectations in April, with slowing EV adoption and weak demand for EV charging equipment.

The analyst cut FY24 revenue estimate to $164.8 million from $169.7 million.

Apart from this, B. Riley Securities analyst Christopher Souther maintained a Neutral rating with a price target of $3.00.

The analyst remains cautiously optimistic and sees growth, operating expenses, and margin execution as key drivers for achieving positive EBITDA.

Price Action: BLNK shares are up 2.46% at $2.9100 at the last check Friday.

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