Electric vehicle (EV) charging company ChargePoint Holdings, Inc. (CHPT) faces vital new risk factors that could be detrimental to CHPT stock. In its Q3 2024 earnings report, the company disclosed seven new potential risks while removing three risks. It warns investors of 65 potential risks to its business. The technology and innovation sector carries the highest risk for ChargePoint shareholders.
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One of ChargePoint’s newest risks concerns the data security of its EV charging stations. It highlights the potential for “cyber-attacks, service disruptions or other security incidents.” These factors could result in “data breaches, loss or interruption of services, intellectual property theft, claims, litigation, regulatory investigations, significant liability, reputational damage, and other adverse consequences.”
To go along with this, ChargePoint also includes “computer malware, viruses, ransomware, hacking, phishing attacks and similar disruptions,” as other potential threats to its business. These could result in security and privacy breaches, as well as service interruptions. This could harm the EV charging company’s business.
What This Means for CHPT Stock
While investors currently do not have to worry about active security, privacy, or data breaches, the potential for one is there. That could be a concern for traders as the risk of this happening increases alongside the growth of ChargePoint’s EV charging network.
When warning of the risk factor, ChargePoint stresses that it’s “highly reliant” on its network and systems. It also says the same about its service providers and component suppliers. The company clarifies any of these systems and data could be the target of cyber attacks.
Another worry for investors is the recent performance of CHPT stock. While the company’s shares jumped 6.87% yesterday alongside its Q3 earnings report, the stock is slipping 1.07% as of this writing. Shares are also down 40.17% year-to-date and 39.91% over the last 12 months.
Is CHPT Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for ChargePoint is Hold based on two Buy, six Hold, and one Sell ratings over the last three months. With that comes an average price target of $2.12, a high of $3, and a low of $1.20. This represents a potential upside of 51.43% for CHPT shares.
