After earnings, is Blink Charging Co stock a buy?

Blink Charging Co. (NASDAQ:BLNK), a leading figure in the electric vehicle (EV) charging infrastructure sector, announced a seven-fold increase in annual revenues in FY23.

Revenues soared to $140.6 million, alongside an impressive 89% growth in fourth-quarter revenues year-over-year, reaching $42.7 million.

Is BLNK stock a buy?

Financial analysts have responded positively to these developments, reaffirming a Buy rating on Blink Charging’s stock with a forward-looking price target of $7.00.

This endorsement follows the company’s consistent outperformance in revenue forecasts and its upward revision of future guidance for the third consecutive quarter.

Blink Charging’s solid gross margin profile and the potential for enhanced operational expense leverage are pivotal factors driving this optimistic outlook.

Focus on positive EBITDA

A critical element of Blink Charging’s strategic roadmap is its commitment to achieving positive adjusted EBITDA by the end of 2024, a goal it plans to accomplish without resorting to further equity dilution.

This is a departure from its previous reliance on its At-The-Market (ATM) offering facility in late 2023 and early 2024. This strategic pivot is aimed at preserving shareholder value while ensuring sustainable growth.

BLINK Charging to expand

Blink Charging has undertaken significant strategic initiatives, including the expansion of its manufacturing facility near Washington, DC, and the comprehensive rebranding of its legacy companies.

These moves are designed to bolster Blink Charging’s dominance in the North American Level 2 EV supply market.

With $113 million in gross proceeds raised to fortify its balance sheet, the company is well on its way to achieving a $165 million to $175 million revenue target for 2024, aiming for a gross margin in the vicinity of 33%.

The establishment of a new manufacturing facility in Bowie, Maryland, underscores Blink Charging’s commitment to the Buy America initiative, setting the stage for an annual production capacity of up to 50,000 chargers.

This strategic positioning is further reinforced by the U.S. Post Office’s expressed interest in acquiring Blink’s chargers, a testament to the company’s competitive edge and alignment with national sustainability goals.

Where’s Blink Charging headed?

Looking ahead, Blink Charging anticipates a revenue growth of 165-175% in 2024, with a revenue mix projected to be 75% product and 25% service in the U.S., and a reverse mix of 25% product and 75% service in Europe.

The integration and rebranding of its operations into Blink UK and Blink Belgium are set to enhance its footprint in the European market, presenting a well-rounded approach to capturing global EV charging demand.

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