While global logistical hindrances keep intensifying with the continuing Russia-Ukraine war, the U.S. Congress has passed a bill to ban oil and gas imports from Russia. This is expected to keep oil and gas prices well above normal levels for an extended period. As a result, the demand for electric vehicles (EVs) is expected to rise significantly, making the prospects bright for charging solutions providers.
In addition, the Biden administration’s bipartisan infrastructure bill has allotted $5 billion to build a national EV charging network, which should drive the industry’s growth further. According to Emergen Research, the global EV charging infrastructure market is expected to grow at a 38.6% CAGR through 2030.
Given this backdrop, Wall Street analysts recommend buying EV charging stocks Wallbox N.V. (WBX), ADS-TEC Energy PLC (ADSE), Volta Inc. (VLTA), and Beam Global (BEEM), which are well-positioned to deliver significant upside in the coming months.
Wallbox N.V. (WBX)
Headquartered in Barcelona, Spain, WBX, a technology company, creates electric vehicle charging and energy management systems that redefine users’ relationships with the grid. It provides a portfolio of charging and energy management solutions worldwide for residential, semi-public, and public use.
On March 16, 2022, Enric Asuncion, WBX’s CEO, said, “2021 was a pivotal year for us–we became a public company, launched new award-winning products, formed strategic commercial partnerships and expanded into almost 100 markets, all whilst maintaining our focus on constant innovation.”
WBX’s revenue came in at $31.33 million for the fourth quarter, ended Dec. 31, 2021, up 165% year-over-year. Its cash and cash equivalents were $129.01 million for the period ended Dec. 31, 2021, compared to $27.41 million, for the period ended Dec. 31, 2020. Also, its financial investments were $64.56 million, versus $294,000 for the prior-year period.
Analysts expect WBX’s revenue to grow 154.7% year-over-year to $220.25 million in 2022. Its EPS is estimated to increase by 56.2% in 2023. Over the past nine months, the stock has gained 22.6% in price to close yesterday’s trading session at $12.22. Both the analysts rating the stock have rated it Buy. They expect the stock to hit $20.50 in the near term, which indicates a potential 67.8% upside.
ADS-TEC Energy PLC (ADSE)
Based in Dublin, Ireland, ADSE, a B2B technology company, develops, manufactures, and services intelligent battery buffered energy systems. Its applications are manifold in mobility, industry, commerce, infrastructure, and residential.
On Dec. 23, 2021, ADSE announced its business combination with European Sustainable Growth Acquisition Corp. Thomas Speidel, ADSE’s founder and CEO, said, “We have already delivered hundreds of battery-buffered ChargeBox platforms, and are rapidly expanding our reach to meet the ever-growing need for ultra-fast charging capabilities and deliver charging speeds that would otherwise not be possible everywhere on existing grids.”
ADSE’s revenue is expected to be $94.10 million in 2022, representing a 111.5% year-over-year rise. The company’s EPS is expected to increase by 15.4% in 2022. The stock closed yesterday’s session at $7.04. The sole analyst rating the stock has rated it Buy. The price target of $14.00 indicates a potential 98.9% upside.
Volta Inc. (VLTA)
New York City’s VLTA operates a network of smart media-enabled charging stations for electric vehicles in the United States. The company has installed approximately 1,900 chargers across 26 territories and states.
On Feb. 14, 2022, VLTA announced the expansion of its collaboration with Walgreens to target installing 1,000 DC (direct current) fast charging stalls at more than 500 Walgreens throughout the U.S. Scott Mercer, VLTA’s founder and CEO, said, “As we expand our DC Fast charging presence across the country, Walgreens is an ideal match for faster forms of Volta charging given the average time a Walgreens shopper typically spends in-store.”
For the third quarter, ended Sept. 30, 2021, VLTA’s total revenues came in at $8.49 million, up 77.1% year-over-year. Its cash and cash equivalents were $331.25 million for the period ended Sept. 30, 2021, compared to $58.81 million for the period ended Dec. 31, 2020. Its total current assets came in at $363.41 million, compared to $81.65 million also for the same period in the prior year.
For its fiscal year 2022, analysts expect VLTA’s revenue to be $76.64 million, representing a 136.5% year-over-year rise. Its EPS is expected to increase 55.4% in 2022. The stock closed yesterday’s trading session at $3.10. Among the five analysts that rated the stock, two rated it Buy, and three rated it Hold. The consensus price target of $7.40 indicates a potential 138.7% upside.
Beam Global (BEEM)
BEEM, a cleantech company, designs, develops, engineers, manufactures, and sells renewably energized products for electric vehicle (EV) charging infrastructure, outdoor media and branding, and energy security products. BEEM is headquartered in San Diego, Calif.
On Feb. 23, 2022, BEEM announced its agreement to purchase AllCell Technologies. BEEM’s CEO Desmond Wheatley said, “This acquisition deepens and widens the moat around our first-to-market leadership position in several rapidly growing and very large markets.”
BEEM’s revenues came in at $3.49 million for the three months ended Dec. 31, 2021, up 58.5% year-over-year. Its net loss came in at $2.02 million, compared to a $2.34 million loss in the year-ago period. Moreover, its loss per share came in at $0.22 compared to a $0.31 loss per share in the prior-year period.
BEEM’s revenue is expected to be $42.97 million, increasing at the rate of 127.6% in 2023. Its EPS is also estimated to increase by 104.4% to $0.03 in 2023. The stock gained 68.9% in price over the past month to close yesterday’s trading session at $24.75. Of the three Wall Street analysts that rated the stock, one rated it Buy, and two rated it Hold. The $50.00 consensus price target indicates a potential 102% upside.
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WBX shares were trading at $12.10 per share on Friday morning, down $0.12 (-0.98%). Year-to-date, WBX has declined -25.95%, versus a -5.73% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...
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