Investing.com
Published May 14, 2025 08:44AM ET
On Wednesday, H.C. Wainwright analyst Sameer Joshi adjusted the price target on Blink Charging Co. (NASDAQ: NASDAQ:BLNK) to $5.00, a significant decrease from the previous $8.00, while maintaining a Buy rating for the stock. Currently trading at $0.78 with a market cap of approximately $80 million, InvestingPro analysis suggests the stock is currently undervalued. The reduction reflects a response to the 69.5% year-over-year decline in the company's product sales, which fell to $8.4 million in the first quarter of 2025 from $27.5 million in the same quarter of the previous year.
The analyst pointed to the challenges within the electric vehicle (EV) charging industry, as well as broader macroeconomic and geopolitical uncertainties as reasons for the revised financial outlook. InvestingPro data reveals the company's revenue has declined by 30.11% over the last twelve months, with two key ProTips highlighting that the company is quickly burning through cash and analysts don't expect profitability this year. H.C. Wainwright has also adjusted its 2025 revenue projections for Blink Charging to $95.1 million, down from $131.1 million, and now anticipates an adjusted EBITDA loss of $24.7 million, a substantial increase from the previously expected loss of $3.2 million.
Despite these setbacks, Blink Charging did report some positive developments. The company experienced a sequential improvement in service margins, which grew to 13.3% in the quarter, up from 11.1%. This growth was attributed to an 8.9% increase in service revenue over the same period. Additionally, Blink Charging has successfully reduced its operating expenses by 7.9% year-over-year, with a notable 9.4% reduction in compensation expenses.
H.C. Wainwright highlighted Blink Charging's strategic focus on five key areas: customer-centric business models, expansion of its DC Fast Charging portfolio, pursuit of recurring revenue streams, leveraging market consolidation, and securing non-dilutive financing. InvestingPro 's comprehensive analysis shows the company maintains a healthy current ratio of 2.15 and holds more cash than debt, supporting its growth initiatives. For 2025, the company has indicated that it expects sequential growth in service revenues and a stronger performance in the second half of the year. Subscribers to InvestingPro can access 10 additional ProTips and detailed financial health scores for deeper insights.
The analyst remains optimistic about Blink Charging's potential to increase its owned DC Fast Charging portfolio, which should lead to higher service revenues and overall revenues in the upcoming quarters. Additionally, the company is aiming to monetize its ride-sharing business within the year. Despite the lowered price target, H.C. Wainwright reaffirmed its Buy rating on the stock, signaling confidence in the company's strategic direction.
In other recent news, Blink Charging Co. reported its first-quarter 2025 financial results, revealing a significant miss on both earnings per share and revenue forecasts. The company posted an adjusted EPS of -$0.18, which fell short of the anticipated -$0.1346, and revenue came in at $20.8 million, notably below the expected $30.76 million. Despite these setbacks, Blink Charging's service revenue showed a positive trend, growing by 29.2% year-over-year, and management expects this growth to continue throughout 2025. The company's operating expenses were reduced by 8%, and management is optimistic about achieving breakeven EBITDA as the year progresses. Stifel analysts maintained a Hold rating on Blink Charging with a $2.00 price target, expressing caution about the company's near-term growth prospects due to the macroeconomic environment. Blink Charging is actively focusing on cost reduction strategies and plans to introduce a new charger to meet market demand later this year. The company is also exploring opportunities for mergers and acquisitions to strengthen its market presence.
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Written By: Investing.com
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