The analyst said the stock could surge more than 45%
ChargePoint Holdings Inc (NYSE:CHPT) is up 3.1% at $15.20 ahead of the open, after Credit Suisse initiated coverage on the electric vehicle (EV) charging concern with a "buy" rating and $22 price target. The analyst in coverage said the Inflation Reduction Act could help give the stock a more than 45% boost, with the bill expected to provide $7.5 billion for EV charging and alternative fuel infrastructure.
This time last week, CHPT had just reported a second-quarter revenue beat, which gave the equity a sizeable boost. However, this rally lost steam at the $17 level. The $14 area has swooped in as a floor, though, putting the equity at a 7.7% quarter-to-date lead. For 2022, ChargePoint stock has shed 22.6%.
Coming into today, most covering analysts were already bullish. Of the 13 in question, nine said "strong buy," compared to only four "hold" ratings. Plus, the 12-month consensus price target of $22.26 is a 50.9% premium to last night's close.
Options traders have also taken an optimistic stance. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CHPT sports a 50-day call/put volume ratio of 4.59, which stands higher than 82% of readings from the past year. In other words, long calls are getting picked up at a much quicker-than-usual clip.