The electric vehicle (EV) industry has gained immense popularity over the past few years due to a greater emphasis on climate protection and sustainability. Governments are investing heavily and are incentivizing the production and sale of EVs. And President Biden recently signed a trillion-dollar bipartisan infrastructure bill into law, which has $7.50 billion allocated to build EV charging networks nationwide.
In line with President Biden’s executive order requiring 50% car sales in the U.S. 2030 be of electrified units, the bill includes a $2.50 billion grant provision for organizations or public entities building EV infrastructure over the next five years. Furthermore, the International Energy Agency (IEA) expects EVs to make up 60% of new car sales by 2030.
Given the industry’s stellar growth prospects, we think it could be wise to watch EV stocks Blink Charging Co. (BLNK) and Lordstown Motors Corp. (RIDE), which Wall Street analysts have recently upgraded.
Blink Charging Co. (BLNK)
BLNK is the owner, operator, and provider of EV charging equipment and networked EV charging services. The Hollywood, Fla., company’s offerings include residential and commercial EV charging equipment and remote monitoring of charging stations.
Private banking company Roth Capital Partners analyst, Craig Irwin, upgraded BLNK from ‘Neutral’ to ‘Buy,’ with a price target increase from $37.00 to $45.00.
On October 7, BLNK announced the sale of 64 residential charging stations to automotive performance parts firm Rudy’s Performance Parts, to be resold across Rudy’s distributive channels. The deal should generate significant cash inflow for the company.
On October 5, the company announced its car-sharing program in Los Angeles, following a Los Angeles Council vote. Regarding this expansion, Michael D. Farkas, Chief Executive Officer of Blink Charging, stated, “We’re very pleased to expand our exclusive car sharing and EV charging agreement with the city of Los Angeles. The program further reinforces our commitment to providing affordable electric vehicle accessibility and EV charging infrastructure to underserved communities across the city.”
For its third fiscal quarter, ended September 30, BLNK’s total revenues increased 606.6% year-over-year to $6.40 million. This can be attributed to a 766.1% rise from the prior-year quarter in product sales to $4.82 million. For the nine months ended September 30, the company’s cash and cash equivalents balance improved 794.6% from the same period last year to $133.23 million.
The Street expects BLNK’s revenue to increase 140.1% year-over-year to $5.89 million this quarter (ending December 2021).
BLNK’s stock has gained 226% in price over the past year and 62.8% over the past month to close yesterday’s trading session at $46.13.
Lordstown Motors Corp. (RIDE)
RIDE is an automotive company that caters to fleet customers for developing and manufacturing light-duty electric trucks. The Lordstown, Ohio-based company is focused on developing its flagship vehicle called the Endurance, a full-size pickup truck.
Premier brokerage firm R.F. Lafferty & Co Inc analyst Jaime Perez upgraded RIDE from a ‘Sell’ to a ‘Hold.’
On November 10, RIDE announced that it has entered an Asset Purchase Agreement (APA) with Hon Hai Technology Group (“Foxconn”), a global technology company, to sell its facility for $230 million. The company expects this sale to provide better opportunities to cater to the growing demand for EVs. The news came after RIDE came to an agreement with Foxconn to work jointly on scalable EV programs in RIDE’s Lordstown, Ohio production and assembly plant.
For the nine months ended September 30, the company’s cash and cash equivalents balance came in at $233.83 million, up 1,086.5% from the same period last year. Cash provided by financing activities increased 108.5% year-over-year to $105.84 million.
A $828.38 million consensus revenue estimate for the next year (fiscal 2022) indicates a 1,842.3% year-over-year improvement. Analysts expect its EPS to increase 34.6% year-over-year in the coming year.
The stock has gained 2.2% in price over the past month to close yesterday’s trading session at $5.12.
BLNK shares were trading at $41.24 per share on Thursday afternoon, down $4.89 (-10.60%). Year-to-date, BLNK has declined -3.53%, versus a 26.71% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.2 Electric Vehicle Stocks That Were Just Upgraded by Wall Street Analysts appeared first on StockNews.com