Big Acquisition Cements Blink Charging Co’s Leading EV Position

Blink Charging Stock Could Triple

There’s been a lot going on lately at Blink Charging Co (NASDAQ:BLNK), a leading provider, owner, and operator of electric vehicle (EV) charging equipment and services.

In May, the company reported record first-quarter revenue growth. That came on the heels of record 2021 financial results. Management expects the momentum to continue throughout 2022.

Since then, the company has announced its acquisition of SemaConnect, Inc., a privately held EV charging infrastructure company. The acquisition will boost Blink Charging Co’s EV infrastructure, making it the only true vertically integrated EV charging company. This means Blink Charging will research, develop, manufacture, own, and operate EV chargers.

Despite the raft of good news, BLNK stock has been taking a beating recently. As of this writing, Blink Charging stock is down by:

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  • 15% over the last month
  • 40% over the last three months
  • 50% over the last six months
  • 46% year-to-date
  • 65% year-over-year

This, however, has nothing to do with what’s been going on at Blink Charging Co. Rather, it’s indicative of what rising interest rates, soaring inflation, threats of a recession, and geopolitical tensions have been doing to the stock market.

Chart courtesy of StockCharts.com

If anything, the economic environment for EV companies has never been better. For starters, more and more people have been switching from internal-combustion vehicles to EVs.

To accommodate this, President Joe Biden’s administration is directing $7.5 billion toward EV infrastructure. Some of that funding will go toward the construction of a national network of 500,000 EV chargers along highways and in communities by 2030. (Source: “Fact Sheet: Biden-⁠Harris Administration Proposes New Standards for National Electric Vehicle Charging Network,” The White House, June 9, 2022.)

Right now, there are only 100,000 EV chargers on U.S. roads. That number will have to be boosted quickly if half of all vehicles sold in the U.S. are to be zero-emission by 2030.

The optimistic outlook for the EV industry—and Blink Charging Co’s position as a leading EV charging company—are why Wall Street analysts are so bullish on BLNK stock. Of the analysts providing a 12-month share-price target for Blink Charging stock, their estimates range from $17.00 to $50.00, suggesting a potential gain of 18% to 248%.

About BLNK Stock

Blink Charging Co provides, owns, and operates EV charging equipment and networked EV charging services in the U.S. and internationally.

The company’s growing presence includes more than 30,000 EV chargers in more than 19 countries and EV supply equipment in 49 U.S. states. You can find the company’s chargers in North America, South America, the U.K., Europe, and Israel. (Source: “First Quarter 2022 Earnings Results,” Blink Charging Co, May 9, 2022.)

More than 200,000 drivers are on the “Blink Network,” a cloud-based system that operates, maintains, and manages EV charging stations.

The network provides property owners, property managers, parking companies, government entities, and other commercial customers with cloud-based monitoring and management of EV charging stations.

Blink Charging Co has several new products slated to be launched in 2022, including a software platform, a mobile app, a charger for retail locations, a fast wall charger, and a charger for homes.

Recent Acquisitions

Acquisitions have been a big part of Blink Charging Co’s expansion plans.

In May 2021, the company acquired Blue Corner N.V., establishing an initial presence in the growing European EV market.

In April 2022, Blink Charging acquired the U.K.-based Electric Blue Ltd. (also known as EB Charging), adding more than 1,150 chargers to its footprint.

On June 14, 2022, Blink Charging announced that it had signed a definitive agreement to acquire SemaConnect, Inc. for $200.0 million. SemaConnect is a leading provider of EV charging infrastructure solutions in North America. (Source: “Blink Charging Announces the Transformative Acquisition of EV Charging Leader SemaConnect, Further Expanding Its Network and Capabilities,” Blink Charging Co, June 14, 2022.)

With its acquisition of SemaConnect, Blink Charging will gain nearly 13,000 EV chargers, 3,800 site host locations, and more than 150,000 registered EV driver members. Moreover, as noted above, Blink Charging Co will become the only EV charging company to offer complete vertical integration.

SemaConnect’s manufacturing facility in Maryland will allow Blink Charging to comply with the Biden administration’s “Buy American” mandates and capitalize on the government’s $7.5 billion in funding for EV infrastructure.

Record Q1 Revenue Growth

For the first quarter ended March 31, Blink Charging announced that its total revenue increased by 339% year-over-year to $9.8 million. (Source: “Blink Charging Announces Record First Quarter 2022 Results,” Blink Charging Co, May 9, 2022.)

The company’s service revenue in the first quarter of 2022 went up by 346% year-over-year to $1.5 million, while its product sales climbed by 382% to $8.0 million.

Blink Charging Co saw increased sales of commercial chargers, DC fast chargers, and residential chargers in the first quarter. The number of the company’s charging stations contracted or sold in the quarter jumped by 99% year-over-year to 3,174.

The company also earned more revenue from Blue Corner N.V. in the first quarter.

Blink Charging Co reported a first-quarter 2022 net loss of $15.1 million, or $0.36 per share, compared to a first-quarter 2021 net loss of $7.4 million, or $0.18 per share, in the first quarter of 2021.

The company ended the first quarter with cash and marketable securities of $161.9 million.

Analyst Take

A leading provider of EV charging equipment, Blink Charging Co has a large and growing international presence that has been enhanced by strategic acquisitions, including that of SemaConnect.

Blink Charging continues to report record revenue growth, expand its product offerings, establish multiyear partnerships, and have success with state and federal government programs that promote EVs.

The EV revolution is just getting started, but it already looks like Blink Charging stock will be one of the clearest winners.