Bank of America expects this under-the-radar global EV charging stock to soar 118%

Published Thu, Apr 13 20238:23 PM EDT

Shares of U.K.-listed electric charging infrastructure firm Pod Point are expected to surge by 118% over the next 12 months, according to Bank of America. The investment bank increased its price target and predicted shares of the company would rise to £1.74 in a note on April 11. The stock is up by more than 20% this year and was trading at £0.78 on Thursday. Bank of America expects the recent rise in the number of EVs in the U.K. to bolster demand for charging infrastructure and benefit the London-listed stock's bottom line. U.K. electric vehicle sales registrations have surged by 15% year-to-date, with battery electric vehicles reaching record highs in the first quarter of 2023, according to U.K. industry lobby group Society of Motor Manufacturers and Traders. The SMMT added that the increase suggests that " supply chain challenges slowly continue to ease " and production lead times will return to normal throughout the year. PODP-GB 5Y line Bank of America has raised its expectations for EV sales in the U.K. between 2023 and 2025 by 3-4% compared to its earlier estimates in February. Pod Point, with a market cap of £120 million ($150 million), manufactures its EV chargers and provides customers in the U.K. and Norway access to its electricity network. Since 2020, France's state-owned energy company EDF has been a majority shareholder with a 54% stake, according to FactSet data. Founded in 2009, the company also maintains hundreds of charging stations at supermarkets in the U.K. Last year, it became a "preferred" home-charge point supplier for German automaker BMW . "We still see a clear need for UK charging infrastructure, benefitting Pod Point as the #1 in the market, and with > 100% potential upside, we reiterate our Buy," wrote BofA analysts led by Marianne Bulot in a note to clients on Apr. 11. BofA also said the discounted valuation for Pod Point shares is "unjustified" given the company's growth. The analysts forecast a compound annual growth rate between 50% from now until the end of 2025 and around 35% over the next decade.