ChargePoint Holdings (CHPT) shares are in focus on Tuesday after the EV charging specialist said it has expanded its partnership with Optimus Energy Solutions.
The expanded collaboration aims to grow Optimus’s network footprint by more than 200 ports, mainly in the eastern and southeastern United States.
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ChargePoint stock has been rather disappointing for shareholders in recent weeks, currently down about 30% versus its high in mid-June.
www.barchart.comWhat the Optimus Deal Means for ChargePoint Stock
In its press release, ChargePoint said it will serve as the exclusive solutions provider for Optimus Energy, which will use its end-to-end platform comprising advanced hardware, cloud software, and support services.
While Optimus takes on the responsibilities and capital expenditures as the direct owner-operator of these stations, ChargePoint secures a predictable, high-volume pipeline for its equipment distribution.
This could accelerate the deployment of its high-demand Express Solo chargers.
That said, CHPT stock has a history of losing nearly 1.7% on average in July, followed by a 1.82% decline in August — a seasonal pattern that makes it rather unattractive to own in the near term.
Is It Worth Buying CHPT Shares Today?
For those invested in ChargePoint shares, the Optimus deal provides a crucial boost to deployment figures without the heavy financial burden of station ownership.
However, the company remains engulfed by profitability concerns, having recently posted roughly $43 million in net loss for its latest reported quarter.
Note that the derivatives market is not particularly bullish on the EV stock either, with the put-to-call ratio on options contracts expiring Nov. 20 set at 1.0x currently.
And the lower price on those contracts ($5.98) signals ChargePoint will continue to hover around its current price through year-end.
How Wall Street Recommends Playing ChargePoint
On the flip side, Wall Street analysts seem to believe the recent weakness in CHPT shares has gone a bit too far and the company could actually push higher from here over the next 12 months.
While the consensus rating on ChargePoint Holdings sits at “Hold,” the mean price target of $6.58 indicates potential upside of more than 10% from current levels.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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