One Wall Street analyst thinks ChargePoint will reach $2. Is it a purchase around $1.30?

Charging point (CHPT -5.75%) has long struggled with a weakening electric vehicle (EV) market, and the charging network operator is just coming off its latest earnings report.

Revenue fell 28% to $108.5 million for the second quarter of fiscal 2025, ended July 31, with a 44% drop in the grid charging systems segment to $64.1 million of dollars. However, its subscription revenue business rose 21% to $36.2 million.

ChargePoint also narrowed its generally accepted accounting principles (GAAP) net loss from $125.3 million to $68.9 million, though it is still far from turning a profit. The company also said it would cut its workforce by 15 percent in an attempt to get closer to profitability.

Amid a challenging EV market backdrop, one Wall Street analyst moderated his expectations for ChargePoint but still sees upside in the EV stock.

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An analyst dims his view on ChargePoint

Following ChargePoint’s second-quarter earnings release last week, TD Cowen cut its rating on the stock from hold to buy and cut its price target from $3 to $2.

Cowen said the electric vehicle “recession” was still affecting the company, and while he saw some signs that a bottom might be nearing, a re-acceleration in its revenue growth would take time.

Even with the lowered price target, Cowen still gives the stock an implied upside of 52% to Friday’s close.

Is ChargePoint stock a buy?

ChargePoint has fallen steadily since going public through a SPAC in 2021 as momentum in the EV market faded and its combined charging system (CCS) lost market share to adzeNorth American Charging System (NACS).

The latest earnings report only gives more reason to believe that the stock may eventually break even, as declining revenues and mounting losses over a sustained period are usually a recipe for bankruptcy.

With the electric vehicle industry struggling in a big way, with ChargePoint’s revenue falling and losses mounting, investors would be better off avoiding the stock.