ChargePoint (CHPT) boasts a ~70% share of the L2 networked charging hardware market in the US, and now it has made another move to further cement its status as a leading EV charging player.
On Tuesday, the company announced it intends to acquire e-mobility provider has-to-be, a company with a leading European EV charging software platform. The purchase will cost CHPT €250 million in a ~60% stock and ~40% cash deal. The transaction should be consummated sometime in FY21.
Customers can make use of has-to-be's hardware agnostic be.ENERGISED platform for the integration, operation and customization of their EV charging offerings. The company caters to over 1,000 clients in the automotive, fleet, and oil and gas sectors. has-to-be also boasts ~40,000 networked ports, and through open roaming agreements, 250,000-plus networked ports. Volkswagen is amongst its investors.
The deal should help ChargePoint make further inroads into the European market, particularly in Switzerland, Germany and Austria - has-to-be counts 125 employees in the latter two countries.
Oppenheimer’s Colin Rusch says the company is a “good cultural fit for CHPT which will augment the platform's capabilities.”
“With CHPT's acquisition of has-to-be, we believe the company is extending its lead in networked charging capabilities while expanding its geographic footprint,” the 5-star analyst went on to say. “At core, we see this as a combination of best-in-class software solutions and networks which will be able to leverage CHPT's leading hardware solutions and offers the potential to materially accelerate CHPT's growth in the EU. We remain bullish on CHPT shares and expect a more detailed update when the company reports results.”
CHPT shares are down by 20% since going public via a SPAC merger in March, but Rusch expects the company to claw back those losses and some. The analyst’s $39 price target suggests shares will climb by 62% over the next 12 months. Rusch’s rating stays a Buy. (To watch Rusch’s track record, click here)
All of the Oppenheimer analyst’s colleagues agree. With Buy ratings only – 6, in total - the stock has a Strong Buy consensus rating. At $38.67, the average price target is just below Rusch’s and implies share appreciation of ~61% on the one-year time frame. (See CHPT stock analysis on TipRanks)
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