On Friday, Roth/MKM made an adjustment to the price target for Blink Charging Co. (NASDAQ:BLNK), reducing it to $12.00 from the previous $25.00. Despite the significant decrease in the price target, the firm maintained a Buy rating on the stock.
Blink Charging reported robust fourth-quarter results for 2023, surpassing the pre-released revenue figures by $2.7 million and exceeding Roth/MKM's earlier estimate by $8.6 million. The company's adjusted gross margins were consistent with expectations when excluding certain items and reflected a comparable mix of lower-margin DC Fast Charging (DCFC) hardware sales as seen in the third quarter of 2023.
The company successfully raised $113 million through an At-The-Market (ATM) offering, which has positioned Blink Charging as fully funded. Management has also taken steps to strengthen the company's financial standing by repaying $45.5 million in promissory notes related to the acquisition of SemaConnect.
Blink Charging has reaffirmed its target to achieve a positive EBITDA by the fourth quarter of 2023. The analyst noted that the substantial gross margins on Level 2 (L2) chargers could indicate potential for higher-than-anticipated profits in 2024, especially as production in Bowie, Maryland, increases. This observation points to the possibility of outperforming the 33% gross margin guidance set for the next year.
InvestingPro Insights
Following the recent Roth/MKM price target adjustment for Blink Charging Co. (NASDAQ:BLNK), it's essential to consider the company's financial health and market performance. According to InvestingPro data, Blink Charging has a market capitalization of 203.57 million USD, indicating its size within the market. Despite reporting robust fourth-quarter results for 2023, the company's price-to-earnings (P/E) ratio stands at -0.84, reflecting its current lack of profitability. Furthermore, the company's revenue growth has been impressive, with a 129.96% increase in the last twelve months as of Q4 2023, a testament to its expanding operations.
InvestingPro Tips reveal some critical insights into Blink Charging's financial nuances. Analysts have highlighted that the company holds more cash than debt on its balance sheet, which is a positive sign for financial stability and potential for investment. Additionally, analysts anticipate sales growth in the current year, which could be a driving factor for the company's target to achieve a positive EBITDA by the fourth quarter of 2023. However, it's worth noting that the company is quickly burning through cash and is not expected to be profitable this year.
For investors looking to delve deeper into Blink Charging's prospects, there are 13 additional InvestingPro Tips available, which can provide a more comprehensive analysis. Interested readers can explore these tips and gain further insights by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/BLNK.
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