Electric Vehicle Stock Downgraded on Valuation Concerns

The equity is coming off another rally to the $47 level

Digital Content Manager
Nov 22, 2021 at 11:13 AM
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The shares of electric vehicle equipment name Blink Charging Co (NASDAQ:BLNK) are down 9.4% at $39.02 this morning, following a bear note from Cowen. The analyst in question downgraded BLNK to "market perform" from "outperform," noting its valuation is too high after an "euphoric" rally for the sector. Cowen also lowered its price target by $1 to $40. 

It has been an incredible 12 months for the equity, which is up 73.1% in that time frame. Though today's drop has put the stock back below its year-to-date breakeven, BLNK is coming off a rally back to the $47 region, which pressured shares lower back in April as well. Every major moving average still sits below as potential support, though, including the 10-day moving average, which seems to be keeping some of these losses in check. 

Heading into today, analysts were optimistic towards BLNK. Of the six in coverage, four said "buy" or better. Plus, the equity's 12-month consensus price target of $41.43 is a 6% premium to current levels. 

Short interest has been slowly rising, up 1.8% over the last two reporting periods. Shorts already have a solid grip on BLNK, with short interest accounting for 36.1% of the stock's available float, or over six days' worth of pent-up buying power. 

The options pits, on the other hand, have taken an optimistic stance. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BLNK sports a 50-day call/put volume ratio of 5.18 that stands higher than 94% of readings from the last year. This means long calls have been getting picked up at a quicker-than-usual pace. 

 

 

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