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Blink Charging: Buy, Sell, or Hold?

Blink Charging (BLNK) is poised to grow exponentially. Mounting demand for EVs and increased investments in EV charging infrastructure should benefit the company handsomely. An economic rebound aided by supportive government policies is expected to help drive this demand, making BLNK a ‘Buy’ at the current price level

Blink Charging Co. (BLNK) owns and operates EV charging stations. The company provides residential and commercial EV charging equipment and Blink Network, a cloud-based system that manages the charging stations.

According to the International Energy Agency, the number of EVs on globally will surpass 125 million by 2030. This will necessitate an expansion of electric vehicle charging infrastructure. This represents an enormous opportunity for BLNK as more and more EV drivers seek fast, convenient and reliable charging options. The company is expected to see substantial business growth based on its innovative product offerings, systematic expansion, and growing brand recognition.

Massive growth in EV sales underpinned by supportive government policies and EV charging technology advances have helped BLNK’s stock gain 1,136.6% year-to-date. This impressive performance has helped BLNK earn a “Buy” rating in our proprietary rating system.

Here’s how our proprietary POWR Ratings system evaluates BLNK:

Trade Grade: A

BLNK is currently trading above its 50-day and 200-day moving averages of $12.40 and $6.38, respectively, indicating that the stock is in an uptrend. The stock has gained 215.7% over the past three months, reflecting solid short-term bullishness.

BLNK’s revenue has increased 18% year-over-year to $0.90 million in the third quarter ended September 2020.On December 3rd, the company announced an agreement with JSC Management Group for the deployment of numerous EV charging stations at key Burger King locations across the Northeast. This partnership should provide BLNK with another channel to grow its customer base in conjunction with the burgeoning market for EVs.

On November 23rd, BLNK announced that it has acquired U-Go Charging and its portfolio of EV charging stations. This acquisition is designed to broaden BLNK’s footprint across the United States.

Buy & Hold Grade: C

In terms of the stock’s proximity to its 52-week high, which is a key factor that our Buy & Hold Grade considers, BLNK is not well positioned. The stock is currently trading 34.5% below its 52-week high of $34.67, which it hit on November 23rd.

The company’s net revenue has grown at a CAGR of 19.8% over the past three years. Although BLNK faced challenges with logistics, shipping delays, and a decrease in driving patterns impacting utilization amid the pandemic, it is expected to gain momentum as the economy recovers gradually.

Peer Grade: C

BLNK is currently ranked #13 out of 36 stocks in the Specialty Retailers industry. Other popular stocks in this industry are GameStop Corporation (GME), Collectors Universe, Inc. (CLCT) and Five Below, Inc. (FIVE).

FIVE, GME, and CLCT have gained 22.1%, 172.7%, and 235.3% year-to-date, respectively. This compares to BLNK’s 1,136.6% returns over this period.

Industry Rank: C

The Specialty Retailers industry is ranked #63 out of the 123 industries. The companies in this industry provide EV charging services, office supplies, video games, books, health supplements, beauty supplies, and more.

The widespread effect of the novel coronavirus had led to a complete shutdown of transportation activities and disruption in manufacturing operations. However, as economies gradually recover, so too is the global electric vehicle charging stations market, which is expected to witness significant growth consistent with the growing demand for EVs.

Overall POWR Rating: B (Buy)

BLNK is rated a “Buy” due to its impressive financials, short-term bullishness and solid price momentum as determined by the four components of our overall POWR Rating.

Bottom Line

BLNK is well positioned to soar in the coming months despite gaining 1,136.6% year-to-date. With the rise in climate awareness and a growing shift from gas vehicles to electric vehicles occurring around the globe, the adoption of EVs and related infrastructure is expected to grow at a rapid clip in coming years. The consensus EPS estimate for BLNK for the next year represents a 15.2% improvement year-over-year. The consensus revenue estimate of $10 million represents an 89.4% increase from the same period last year.

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BLNK shares were trading at $23.80 per share on Friday afternoon, up $1.10 (+4.85%). Year-to-date, BLNK has gained 1,179.57%, versus a 16.30% rise in the benchmark S&P 500 index during the same period.

About the Author: Imon Ghosh

Imon is an investment analyst and journalist with an enthusiasm for financial research and writing. She began her career at Kantar IMRB, a leading market research and consumer consulting organization.


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