Shares of ChargePoint Holdings (CHPT -4.79%) spiked today after new analyst coverage recommended investors buy the stock. ChargePoint shares were trading up 8.5% as of 2 p.m. ET. That has helped increase the return from ChargePoint shares to more than 25% in the last six weeks.
Just a week after a JPMorgan Chase analyst assigned a $20 price target on ChargePoint stock, another analyst sees even more upside. Analysts at Credit Suisse put out a note today saying they believe the climate bill could help drive shares of the EV charging network company up to another 50% or so.
Maheep Mandloi at Credit Suisse cited the Inflation Reduction Act (IRA) as the catalyst that could drive ChargePoint shares to $22. That would represent a 49.2% gain over yesterday's closing price of $14.75 per share.
The IRA contains incentives for consumers that purchase both new and used electric cars and trucks. The note issued today by Mandloi, shared by Benzinga, pointed to ChargePoint's "capital-light" model and its leadership position in the sector as reasons to believe the stock should move higher.
Mandloi cited ChargePoint's more than 180,000 activated ports across the U.S., which represents a market share of more than 48%. As EV adoption grows, that network of charging stations should bring in more low-cost revenue to ChargePoint.
Late last month, the company reported its fiscal 2023 second-quarter revenue nearly doubled for the quarterly period ended July 31 versus the prior-year period. With shares down more than 30% in the last 12 months before today's spike, some investors are in agreement with Mandloi that now is the time to buy ChargePoint stock.