The dramatic pullback for growth stocks has created a big opportunity for investors in ChargePoint , according to JPMorgan. Analyst Bill Peterson upgraded ChargePoint to overweight from neutral, saying in a note to clients that the electric vehicle charging company has a large potential market for growth. "Given the stock's recent pullback, we see a good opportunity for investors and we upgrade CHPT to Overweight," Peterson wrote. "Specifically, the company is well-positioned to benefit from growth in all customer verticals in the US, and increasingly so in Europe, assuming resumed installations at work sites as employees gradually return to the office (as COVID moves to endemic stage) and additional fleet deployments that we expect to inflect meaningfully this year." Like many other clean energy stocks, ChargePoint has struggled recently as inflation has remained strong and the Federal Reserve has prepared to raise interest rates. Shares are down more than 50% over the past three months. One particular area of concern for investors is companies that aren't yet profitable, but JPMorgan said it was too early in ChargePoint's growth stage to be overly concerned with profit. "We think investors may be too pessimistic on ChargePoint's expenses and path to profitability; for us, the added investments in its go-to market efforts are key to seed the company's target markets. Thus, the reward should be strong, sustainable growth with an expanding customer base as we anticipate switching costs being high," the note said. JPMorgan did lower its price target on the stock to $20 per share from $26. The new target is still nearly 75% above where shares closed on Thursday. Shares rose 2.3% in premarket trading Friday. — CNBC's Michael Bloom contributed to this report.
Charge Point EV stations
Source: Charge Point
The dramatic pullback for growth stocks has created a big opportunity for investors in ChargePoint, according to JPMorgan.