Shares of ChargePoint Holdings Inc. jumped more than 11% on Tuesday, on track for an eight-week high, after BofA analysts raised their rating on the shares to buy, saying that the provider of electric-vehicle chargers is “a best-in-class way to play” the EV charging space.
ChargePoint stock
CHPT,
was on track to close at its highest since April 4, and for the largest one-day percent increase since Aug. 31, when it rose 12.3%.
The BofA analysts, led by Alex Vrabel, highlighted the EV charging company’s “anchor” positions in both the U.S. and European EV charging market, saying they “offer an elegant but unconcentrated way to play electrification trends, beyond the route to profitability.”
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Focusing on cash burn and ChargePoint’s route to profitability, they supported the company’s assertions that a “cash inflection” was on track for the end of next year.
In addition, the stock’s valuation was “compelling,” with the stock recently hitting all-time lows, the analysts said.
The stock upgrade also appeared to lift shares of EVgo Inc.
EVGO,
which rose more than 4% on Tuesday, also outperforming the broader equity markets.
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Shares of ChargePoint are nearly flat so far this year, compared with gains of about 10% for the S&P 500 index
SPX,
In the last 12 months, ChargePoint stock is down 29%, versus gains of 1.3% for the index.
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