The price of Blink Charging Co (BLNK) shares has gained 432.8% over the past year but lost 14.4% in the past six months.
Blink provides electric vehicle (EV) charging equipment and services. The Blink EV charging network, EV charging devices, and charging services remain the company's principal goods and services. Currently, the company has a $1.59 billion market capitalization. (See BLNK stock chart on TipRanks)
The EV charging stock is banking on rising EV adoption rates, more government attempts to encourage the use of electric vehicles on roads, and global expansion through acquisitions and partnerships.
There are several reasons why Blink is in the limelight now. Let's have a look.
Inclusion to Russell 2000 Index
Last month, the company announced its inclusion in the Russell 2000 index, which is considered the most popular index of small-cap stocks on the market.
So the inclusion on Blink Charging instantly raises the company's profile, bringing in optimism among the investors.
Blink Charging CEO Michael Farkas said, “Our addition is a testament to the growth of our Company and the continued success we’ve had establishing Blink as a leading manufacturer and provider of EV chargers. We look forward to the expected increased exposure to investors and heightened visibility of our stock that our inclusion in the Russell 2000 Index will bring to Blink Charging."
EV Charging Station Deployment Continues
In June, Blink announced the installation of ten Blink-owned IQ 200 Level 2 EV charging stations at three locations of AtlantiCare Integrated Healthcare System, the largest healthcare organization in Southern New Jersey. This marks AtlantiCare's first deployment of Blink IQ 200 electric vehicle charging stations.
These deployments increase Blink's total deployments in the Garden State to 81 EV charging stations spread across 26 locations, with six more awaiting installation.
Focus On Global Expansion
In May, Blink Charging acquired Blue Corner N.V. in a cash and stock deal valued at approximately $24 million, or €20 million. The deal expands Blink’s EV portfolio in the growing European EV market.
Blink made its foray into the European market in Sept 2019 through a joint venture with Eunice Energy Group. Since then, the company has made varied efforts to expand with new partnerships and the deployment of its EV charging stations throughout Europe.
Strong EV Charging Station Market Growth
As the adoption of EVs is rising, the demand for EV charging stations has also taken a leap and is bound to further increase in the near future, thanks to the growing demand for energy-efficient commuting and increased government support for electric vehicles globally.
According to a Fortune Business Insights report, the global EV charging station market was worth $39.70 billion in 2019 and is expected to reach $100.96 billion by 2027, indicating a compounded annual growth rate (CAGR) of 23.24%.
Blink is well poised to capitalize on the impending infrastructure boom.
Profits still a Long Way Off
On May 13, the company reported its first-quarter earnings. The revenues jumped 72% year-over-year to $2.2 million. Revenue growth was primarily driven by the increased demand for Blink’s commercial and residential products.
Blink-owned charging stations deployed grew by over 370% year-over-year in Q1.
At the same time, BLNK’s net loss per share widened to $0.18 in Q1 from $0.11 per share in the same quarter last year.
While the popularity, awareness, and use of electric vehicles (EVs) continue to rise, it is unknown when charging networks will produce enough revenue to become profitable.
The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average BLNK price target of $38 implies that shares are fully valued at current levels.
Following the Q1 results, H.C. Wainwright analyst Sameer Joshi maintained a Hold rating.
Joshi is of the opinion that Blink’s, “owned-operated installed base, strategic partnerships, and flexible business model, position the company strongly to be a leader in the electric vehicle charging infrastructure space.”
According to the new Tipranks Risk Factors tool, Blink’s main risk category is Finance & Corporate, which accounts for 48% of the total 27 risks identified for the stock. The next two major risk factor contributors are Tech & Innovation and production, both at 15% each. Since March, the company has added one new risk factor, within the sub-topic of Accounting and Financial Operations.
Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment.
Blink scores a 7 of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market averages.
Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.