J.P. Morgan analyst Bill Peterson has maintained their bearish stance on CHPT stock, giving a Sell rating on February 20.
Bill Peterson’s rating is based on several factors that highlight the challenges ChargePoint Holdings is currently facing. Despite ChargePoint’s efforts to manage costs and improve margins, the company is operating in a muted demand environment, particularly due to reduced activity from commercial and fleet customers. This has led to a downsizing of its salesforce, which further pressures its top-line growth.
Additionally, while ChargePoint has made strides in cost management by offshoring to Asia, the path to profitability remains uncertain. The company is navigating a competitive landscape in the charging hardware and software sectors, and investor sentiment remains subdued. Given these circumstances, Peterson believes that there is potential for further downside, and thus, he maintains a Sell rating on the stock.
In another report released on February 20, Goldman Sachs also maintained a Sell rating on the stock with a $0.75 price target.
CHPT’s price has also changed dramatically for the past six months – from $1.690 to $0.660, which is a -60.95% drop .