Why Analysts Say Wallbox Stock Is Poised to Climb
Wallbox NV (NYSE:WBX) is a great, under-the-radar electric vehicle (EV) infrastructure stock that is about to get a lot more attention. Based in Spain, Wallbox might not be familiar to most North American investors, but Wall Street likes what’s been going on at the company.
Wallbox NV reported strong third-quarter results that exceeded the company’s top expectations, its products are sold around the world, it expanded into the U.S. in 2021 and into Canada in 2022, it’s launching new products, and it recently made two strategic acquisitions—including the leading public charging platform in Southern Europe.
Growing EV sales and the rapid adoption of Wallbox NV’s smart chargers have led management to provide serious long-term growth targets. The company expects its revenues to soar from $24.0 million in 2020 to $2.1 billion in 2027, registering a compound annual growth rate (CAGR) of 90%.
This has piqued the interest of Wall Street analysts. They have an average 12-month target for WBX stock of $25.33 and a high estimate of $29.00. This points to potential gains of 100% and 128%, respectively. The analysts’ low target of $22.00 for Wallbox stock still suggests upside of at least 73%.
Chart courtesy of StockCharts.com
About WBX Stock
Wallbox designs and sells EV-charging and energy-management solutions for residential, semi-public, and public use. The company has sold more than 150,000 units in more than 80 countries. (Source: “Investor Presentation: September 2021,” Wallbox NV, last accessed January 31, 2022.)
Although it’s based in Barcelona, Spain, the company has a North American headquarters and innovation lab in California.
In order to meet the increasing demand for its products, Wallbox expects to open a manufacturing facility in the U.S. in the second half of 2022. The company’s annual manufacturing capacity is projected to increase to 290,000 units by 2027 and to 500,000 by 2030. (Source: “Wallbox to Establish its First U.S. EV Charging Systems Manufacturing Facility in Arlington, Texas,” Wallbox NV, September 1, 2021.)
The company has seven offices in the EU and two factories in Barcelona with a combined 500,000-unit manufacturing capacity. Wallbox NV has also formed a joint venture with FAWSN in China, one of the world’s largest auto original equipment manufacturers (OEMs), with a 100,000-unit manufacturing capacity.
Wallbox’s chargers are compatible with all EVs currently on the market, including those made by Tesla Inc (NASDAQ:TSLA).
Wallbox NV Launches in Canada
Wallbox recently announced that it began selling its globally best-selling charger, the “Pulsar Plus,” in Canada. The 48-amp version of Pulsar Plus is one of the fastest home EV-charging options on the market. (Source: “Wallbox Launches in Canada,” Wallbox NV, January 20, 2022.)
This comes less than a year after the company announced it had entered the U.S. market. In Wallbox’s first three months of selling its products in the U.S., the Pulsar Plus became the top-selling EV charger on “Amazon.”
Wallbox NV could be well on its way to replicating this success in Canada. Studies show that nearly seven in 10 Canadians plan to make their next vehicle purchase an EV.
Super Bowl Ad Campaign
Wallbox also recently announced that it will be airing its first-ever U.S. national television ad campaign during Super Bowl LVI on February 13. (Source: “Wallbox to Air its First-Ever National Televised Advertisement During the Super Bowl,” Wallbox NV, January 18, 2022.)
Normally, people either leave the room when commercials come on or fast-forward through them. Not so with the Super Bowl; it’s the one time Americans are willing to give advertisers their undivided attention.
Studies show that TV ads during the Super Bowl work.
Whether they result in a boost of near-term sales is a moot point when it comes to large items like EV chargers. It’s easier to go buy a specific brand of beer after seeing an ad than it is to buy a charger for an EV you don’t have yet, but the Super Bowl ad should help put Wallbox on consumers’ radar. It’s a marathon, not a sprint.
Q3 Revenue Beats Estimate by 16%
In November 2021, Wallbox NV announced its first financial results as a public company.
Its third-quarter revenue went up by nearly 250% year-over-year to $22.0 million. Its year-to-date revenue went up by more than 280% to $55.0 million. (Source: “Wallbox Announces Third Quarter 2021 Revenue 16% Above Budget Expectations,” Wallbox NV, November 4, 2021.)
In Germany, which is the largest EV market in Europe, Wallbox’s year-to-date sales were up by more than 540% over its full-year 2020 results. The company also had a breakout period in the U.S., with year-to-date sales of $3.7 million and third-quarter revenue of $1.9 million.
Wallbox sold more than 66,000 chargers in the first nine months of 2021, 26,000 of which were sold in the third quarter.
When it comes to EV charging companies, Wallbox NV has an electrifying future.
The company is expanding its international footprint, it expects its revenue to expand at a 90% CAGR from 2020 to 2027, it reaffirmed its full-year guidance, and it’s poised to capitalize on the exploding EV market in Europe, China, and North America.
Thanks to its own manufacturing facilities, Wallbox NV has been able to manage global supply chain issues, and it expects the strong momentum to continue in 2022.
All that should give a boost to the value of Wallbox stock.