Bank of America has reiterated its buy rating for electric vehicle (EV) charging firm Wallbox and predicted a 60% rise in shares to $5.5. At present, the stock of the Barcelona-based company, which makes charging systems for the North American and European markets, has suffered a 70% decline over the past year. This has been attributed to high levels of inventory for its distributor’s products. However, its management has made efforts to address the issue and stock levels are likely to return to normal by the second half of 2022.
Despite this, Wallbox has raised its profit margin by 90 basis points in the first quarter of 2022, according to Bank of America equity analyst Marianne Bulot. The firm delivered 45,000 charging units in the first quarter, with declining quarterly figures offset by 24% annual revenue growth. Wallbox has also performed better than its peers, growing by 100% in 2021 compared to the market as a whole’s 23%.
Bank of America analysts predict that the fundamentals of the company will further improve in the second half with the launch of its new 150- and 180-kilowatt superchargers, which will benefit from US subsidies in the Inflation Reduction Act. The firm has also begun manufacturing these units, and “one of the few manufacturers planning US production capacity for 350kw+ chargers to meet big US political ambitions for a national fast charging network,” according to Bulot.
She added that growth has slowed not only for Wallbox this year, but also for other firms, due to the slow adoption of EVs amid supply chain disruption. Despite this, Wallbox’s outlook remains comparatively positive, with growth projected to drive 75% per annum revenue growth through to 2025. Bank of America’s bullish outlook indicates faith in significant growth potential in the EV market in the coming years.