NEW YORK: Shares of ChargePoint Holdings fell nearly 38 percent to a record high on Friday after the electric vehicle (EV) charging network cut its third-quarter revenue forecast and replaced key executives.
ChargePoint expects its revenue to fall to between $108 million and $113 million, well below previous forecasts of between $150 million and $165 million, due to weak demand caused by delays in vehicle deliveries electrics in North America and Europe, the company said after the closing bell. THURSDAY. It will release its third quarter results on December 6.
California-based ChargePoint also announced that its longtime CEO, Pasquale Romano, will be replaced by Rick Wilmer, its chief operating officer, effective immediately. Rex Jackson, ChargePoint’s chief financial officer, has left the company and will be replaced on an interim basis by Mansi Khetani, senior vice president, it also said.
ChargePoint’s stock plunged to $1.95, its lowest level on record, following the announcements. The stock is now down about 80% year to date and is a fraction of its closing price of around $30 when it went public via a merger with an acquisition vehicle for special purpose in 2021.
Several analysts, including JPMorgan, Cowen, Oppenheimer and Needham, cut their price targets and one lowered his rating on ChargePoint stock after the news. The median price target of the 22 analysts covering the company is $8.13, up from $10 a month ago, and their current recommendation is “buy,” according to LSEG data.
“Based on recent investor interactions and several negative data points across the EV value chain, sentiment in the EV charging space has been muted and we are not surprised that “ChargePoint F3Q (Q3) revenues are lower than expected,” JPMorgan analysts led by Bill said. Peterson wrote in a note to investors.
“However, the magnitude of the failure and deceleration at the end of the quarter does not bode well for the near-term fundamentals of ChargePoint or the broader EV value chain in general, and the charging electric vehicles in particular,” the analysts added.
Shares of other major electric vehicle charging network providers, besides ChargePoint, were also trading lower. Blink Charging fell more than 8 percent while EVgo Inc fell 2 percent.
ChargePoint continues to be a “clear leader” from a technology and comprehensive solutions perspective, Oppenheimer analysts led by Colin Rusch said in a note to investors. But they downgraded the company’s rating from “outperform” to “perform” citing executive departures, unstable demand and the “potential for further organizational changes.”