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ChargePoint stock upgraded to Buy from UBS

Shares of electric vehicle charging company ChargePoint (CHPT) jumped this morning after UBS issued a "Buy" rating on its stock. ChargePoint operates over 33,000 charging stations globally and stands to benefit as more drivers transition to electric vehicles. Yahoo Finance's Seana Smith and Brad Smith break down the the stock action.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

SEANA SMITH: Our last mover today and that's ChargePoint shares of the EV charging stock on the move up 6% right now after the open UBS initiating coverage on the stock, giving the company a buy rating a $9 price target. The firm saying that ChargePoint could create an attractive risk reward given its recent stock performance. And we know the stock hasn't done a heck of a lot when you pull up some of those longer term charts here.

When take a look at what the stock has done year to date, certainly has not been a standout by any means. When you take a look at the fact that obviously there is a need for more Chargers within the space, although reports of Tesla or the confirmations I should say, of Tesla really pushing its supercharging network, partnering with so many automakers out there.

But exactly that would mean for a company like ChargePoint and ChargePoint though, saying that there is such a great need for Chargers throughout North America and really globally as we talk about this massive transition to EVs, that the company is still well placed within that industry, talking about potential growth and future growth. That is at least what the analyst is saying here in terms of their bullish outlook. They're saying that the deep customer base and the clear path to break even EBITDA for the fourth quarter of fiscal 2025 is going to help propel shares here.

BRAD SMITH: Yeah, a little bit of a crash course in Chargers this morning for anybody watching, especially if you're looking at the share price action that we were just breaking down for you a moment ago, pairing that with what the note is saying, saying that the company has 33,000 charging stations UBS noting this. Firm sees L2 charging ports such as the home Flexport eventually accounting for over 90% of the install base in 2030 up from 80% roughly right now.

And so what the heck is an L2 charger? Little crash course here for you. It's basically like a gas pump in your garage, but a smart appliance that charges your vehicle, this according to EVO charge. And an added convenience, not only is a level 2 charger ready when you need it to be, you can save on electricity a little bit more during the lower rate times. So some of the perhaps energy recovery perhaps that is baked into that too. All that said, you can essentially have an average charge time for about three to eight hours versus the level 1, which is about 11 to 20 hours as well there.

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