UBS initiated coverage of Blink Charging (NASDAQ:BLNK) with a Buy rating and set a 12-month price target of $7.00 on the stock.
Analysts believe BLNK has the potential to reach breakeven adjusted EBITDA in 2025, one year earlier than the consensus estimate, thanks to the company’s distinctive approach of selling EV charging equipment, managing chargers for clients, and employing a hybrid revenue-sharing model, in addition to the six acquisitions the company has completed since 2020.
“With the shares down 84% in the last year, we see the current price as an attractive entry point with a 4:1 upside/downside skew,” analysts wrote in a note.
As of August 2023, the DOE has reported that BLNK ranks as the third-largest publicly traded EV charging network, holding a 7% market share in both public and private charging ports.
UBS forecasts revenue of $180 million and $ 250 million in 2024 and 2025 respectively; these forecasts are 8% above Street expectations. They view topline beats, progress towards breakeven adjusted EBITDA targets, and resolution of SEC investigation as upside catalysts.
Shares of BLNK are up by 11.26% in pre-market trading on Wednesday.