On Thursday, RBC Capital maintained its Sector Perform rating on ChargePoint (NYSE:CHPT) Holdings Inc. (NYSE:CHPT), with a steady price target of $3.00. The firm highlighted that ChargePoint's adjusted EBITDA surpassed expectations due to lower operational expenditure. However, concerns were noted regarding the rise in inventory levels and ongoing cash burn.
The report acknowledged ChargePoint's commitment to reaching EBITDA breakeven in the fourth quarter of fiscal year 2025. This goal is expected to be achieved through increased revenues and improved margins, as the company continues to sell through its existing higher-cost inventory.
Despite the positive outlook on ChargePoint's financial targets, the firm pointed out that there is still debate about the rate at which margins can expand and the potential for revenue growth. These uncertainties are attributed to the current macroeconomic demand dynamics that could influence the company's performance.
RBC Capital's reiterated rating comes as ChargePoint continues to navigate the complexities of the evolving electric vehicle charging market. The company's efforts to manage its finances and inventory in pursuit of profitability are being closely watched by investors and industry analysts alike.
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