Last Update01 Aug 25Fair value Increased 11%
The increase in Blink Charging’s price target reflects a higher expected future P/E ratio while profitability remained stable, resulting in an upward revision of fair value to $2.40.
What's in the News
- Blink Charging announced installation of 10 new 180 kW dual-port DC Fast Chargers (20 charging ports) at Imperial Center, near the U.S.-Mexico border in California, targeting a high-traffic commercial and transportation junction.
- Formed a strategic collaboration with dfYOUNG to deliver streamlined corporate fleet management and at-home charger installations for salesforces nationwide, providing turnkey solutions and full-service fleet oversight.
- Collaborated with Universal Media to launch the EV Totem concept, integrating advanced EV charging with digital ad displays, debuting at Mountain View Village, Salt Lake City, with plans to expand to more high-traffic locations.
- Expanded partnership with Group Bernaerts to double Blink charging stations at properties in Belgium, implementing a centralized and controlled approach to office charging infrastructure.
- Identified as recommended replacement EV charging provider for Everon customers in Europe and North America, supporting transition after EVBox/Everon business wind-down and enabling full access to the Blink Network.
- Entered non-binding term sheet for a PS100 million SPV with Axxeltrova to fund UK EV charging infrastructure through the LEVI program, targeting growth of the owner-operator model and collaborating with local authorities.
- Announced Michael Bercovich as new CFO, replacing Michael Rama, with interim CFO duties handled by Robert Strauss; Bercovich brings extensive experience in global finance and technology sector leadership.
- Launched 'Seamless Charging' pilot with WirelessCar and ChargeHub in the U.S. and Canada, creating a single-app, hassle-free charging experience with automatic authentication for EV users.
- Initiated a workforce reduction of approximately 20% under the BlinkForward restructuring plan, aiming for over $11 million in annualized savings to accelerate innovation, agility, and long-term profitability.
- Received notice from Nasdaq for non-compliance with the $1.00 minimum bid price requirement, with a 180-day period to regain compliance or risk potential delisting.
- Issued revenue guidance anticipating sequential and continued growth in Q2 and the second half of 2025.
Valuation Changes
Summary of Valuation Changes for Blink Charging
- The Consensus Analyst Price Target has significantly risen from $2.17 to $2.40.
- The Future P/E for Blink Charging has risen from 13.81x to 15.13x.
- The Net Profit Margin for Blink Charging remained effectively unchanged, moving only marginally from 10.06% to 10.20%.
Key Takeaways
- Rapid growth in Blink-owned DC fast chargers is expected to drive significant future revenue and improve net margins.
- Expansion in Europe and market consolidation strategies could diversify and increase revenue, with potential for market share gain and asset acquisition.
- Blink Charging faces profitability challenges, cash flow risks, and operational inefficiencies amid revenue decline, owner-operator transition, and reliance on uncertain regulatory shifts.
Catalysts
About Blink Charging- Through its subsidiaries, owns, operates, manufactures, and provides electric vehicle (EV) charging equipment and networked EV charging services in the United States and internationally.
- Blink Charging is experiencing rapid growth in its owner-operator model for DC fast chargers and is focusing on increasing its portfolio of Blink-owned chargers, which is expected to drive significant future revenue growth.
- The company is experiencing record service revenue growth driven by increased utilization and deployment of Blink-owned chargers, expected to improve net margins as these are higher-margin operations.
- Blink is reducing operating expenses and cash burn significantly, enhancing its potential for profitability, expected to contribute positively to future earnings.
- The expansion in Europe, with strong EV adoption and continued investments in the U.K.'s LEVI program, provides a significant growth opportunity, expected to diversify and increase revenue streams.
- Blink's strategic adjustment toward capitalizing on market consolidation suggests potential for gaining market share and acquiring underpriced assets, which could positively impact future earnings.
Blink Charging Future Earnings and Revenue Growth
Assumptions
How have these above catalysts been quantified?- Analysts are assuming Blink Charging's revenue will grow by 24.6% annually over the next 3 years.
- Analysts are not forecasting that Blink Charging will become profitable in next 3 years. To represent the Analyst Price Target as a Future PE Valuation we will estimate Blink Charging's profit margin will increase from -184.4% to the average US Electrical industry of 10.1% in 3 years.
- If Blink Charging's profit margin were to converge on the industry average, you could expect earnings to reach $21.3 million (and earnings per share of $0.2) by about July 2028, up from $-201.7 million today.
- In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 13.8x on those 2028 earnings, up from -0.6x today. This future PE is lower than the current PE for the US Electrical industry at 28.7x.
- Analysts expect the number of shares outstanding to grow by 1.55% per year for the next 3 years.
- To value all of this in today's terms, we will use a discount rate of 8.25%, as per the Simply Wall St company report.
Blink Charging Future Earnings Per Share Growth
Risks
What could happen that would invalidate this narrative?- Blink Charging experienced a decrease in product revenues for 2024, showing a decline to $126.2 million from $140.6 million in 2023, which may signify challenges in sustaining revenue growth if the trend continues.
- The company's loss per share, although improved, was still significant at $1.96 for 2024, compared to $3.21 in 2023, indicating ongoing profitability challenges that could impact shareholder returns.
- Discussions revealed uncertainties in the owner-operator transition requiring significant capital investment, posing a risk to cash flow and capital availability, particularly given current market conditions.
- Despite improved margins, a reliance on tariffs and regulatory shifts affecting production facilities creates risks that can negatively influence future gross profit levels, especially since these factors remain uncertain and dynamic.
- The company's need for significant cost reductions and cash burn management highlights underlying operational inefficiencies that may obstruct the path to sustainable profitability and positive earnings.
Valuation
How have all the factors above been brought together to estimate a fair value?- The analysts have a consensus price target of $2.167 for Blink Charging based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $5.0, and the most bearish reporting a price target of just $1.0.
- In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $211.6 million, earnings will come to $21.3 million, and it would be trading on a PE ratio of 13.8x, assuming you use a discount rate of 8.3%.
- Given the current share price of $1.16, the analyst price target of $2.17 is 46.5% higher.
- We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.
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Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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