Total To Snap Up London’s Largest Car-Charging Network

French energy company Total SA announced on Tuesday that it will buy London’s largest electric vehicle (EV) charge points network from the Bolloré Group.

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With this acquisition, Total (TOT) is taking over the management and operation of Source London, which includes more than 1,600 on-street charge points. The deal is expected to be closed by the end of the year.

“By combining today these existing infrastructures with Total’s know-how in terms of installation, operation and management of public electric vehicle charging networks, we are starting a new phase, supporting the expansion of electric mobility in London.” said Total’s Alexis Vovk. “In collaboration with our partners and the local authorities, we will be able to meet both the strong growth in demand for on-street charge points and the needs for new mobility solutions of London users.”

Launched in 2010, the Source London network has been developed in cooperation with the London Boroughs and currently represents more than half of the charge points in operation in the city. In addition, Source London’s growth potential is supported by the City of London’s ambition to be a zero carbon city by 2050, notably with the aim of increasing 10-fold the number of charge points within 5 years.

Total has committed to power the EV charging network with electricity 100% guaranteed from renewable sources, to be supplied by its subsidiary Total Gas & Power.

Shares in Total have been hard hit dropping 39% so far this year as the coronavirus pandemic pushed energy prices down and demand is weak. Looking ahead, the $40.97 average analyst price target forecasts 21% upside potential in the shares in the next 12 months.

For CFRA analyst Jia Man Neoh, who last week reiterated a Buy rating on the stock with a $43 price target, the recent headwinds represent an attractive value opportunity. Neoh notes that Total has a historic record of generating steady growth regardless of external conditions. In addition, the analyst points to the company’s robust pipeline of projects in the works and its healthy balance sheet.

Overall, Wall Street analysts share Neoh’s bullish outlook on the stock. The Strong Buy consensus rating shows 6 Buy ratings versus 2 Hold ratings. (See Total’s stock analysis on TipRanks)