On Friday, Deutsche Bank (ETR:DBKGn) adjusted its stock price target for Fastned BV, an electric vehicle charging company, lowering it from EUR50.00 to EUR35.00. The firm maintained its Buy rating on the stock. This change follows the release of Fastned's first-half 2024 financial results, which demonstrated steady operational performance. The company also confirmed that it is on track with its financial guidance for the full year and its mid-term plans.
Fastned's second quarter is traditionally its weakest in terms of revenue, yet despite this seasonal effect, the company managed to keep its revenues relatively stable from the previous quarter. This steadiness is attributed to an increase in AC charging usage in the Netherlands, helped by the stabilization of energy prices earlier in the year. Fastned's network expansion continues to progress, now boasting over 300 stations, and nearly 200 additional locations are lined up for development.
The company's goal to have approximately 1,000 operational stations by 2030 appears to be within reach. However, Deutsche Bank noted that Fastned will likely rely on external funding for an extended period due to escalating expansion costs. The CFO of Fastned expressed a preference for funding options other than equity at the current share price, leaning towards retail bonds and bank financing as more viable alternatives.
The bank's analysis reflects a cautious but optimistic outlook for Fastned, recognizing the company's growth potential alongside the financial challenges of rapid expansion. Deutsche Bank's revised price target and sustained Buy rating indicate a belief in Fastned's long-term strategy despite the near-term hurdles it faces.
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