Wallbox Stock: Fast-Growing EV Charging Stock Has 125% Upside

WBX Stock Rips Higher After U.S. Announces EV Infrastructure Funding

On paper, Wallbox NV (NYSE:WBX) has been one of the best-performing electric vehicle (EV) companies. The Spanish-headquartered company continues to report excellent sales and financial results, including record revenue growth in the first quarter of 2022.

The Spanish-headquartered Wallbox NV has recently launched new products and announced strategic partnerships with companies including Napa Auto Parts, Polaris Inc (NYSE:PII), and Best Buy Canada. It has also expanded its existing partnership with Uber Technologies Inc (NYSE:UBER) to include both the U.S. and Canada.

Despite the raft of good news and strong guidance, Wallbox stock has been, for the most part, trending lower since peaking in November 2021 at $18.50. Currently trading at $10.62, WBX stock is down by 32% year-to-date and up by 6.8% year-over-year.

As you can see in the following chart, however, Wallbox stock has been ripping higher recently.

Chart courtesy of StockCharts.com

While there has been no particular news from Wallbox NV to support its recent share-price gains, on June 9, President Joe Biden’s administration announced that it would direct $7.5 billion toward a nationwide network of 500,000 EV chargers. (Source: “FACT SHEET: Biden-⁠Harris Administration Proposes New Standards for National Electric Vehicle Charging Network,” The White House, June 9, 2022.)

That’s more than triple the current number of EV charging stations in the country.

The outlook for WBX stock is robust, with analysts providing a 12-month share-price target range of $17.75 to $24.00. That points to potential gains in the range of 67% to 125%.

About Wallbox NV

Wallbox designs and sells EV charging and energy-management solutions for residential, public, and semi-public locations. To date, the company has sold more than 240,000 units in more than 100 countries. (Source: “Corporate Presentation: Q1 2022,” Wallbox NV, last accessed June 30, 2022.)

Wallbox currently has four production facilities, three of which are operational and one of which is under construction.

The company expects to open its first U.S.-based EV charger manufacturing facility in Arlington, TX by early fall. The facility will be able to manufacture more than 250,000 units initially and more than 500,000 by 2025. (Source: “Wallbox Expands North American Presence to Support Growing Customer Demand,” Wallbox NV, May 26, 2022.)

By the end of 2022, Wallbox expects its manufacturing capacity to be in excess of a million units.

The company will need this massive production capacity to keep up with global demand. According to Wallbox NV, the EV charging industry is in its infancy, with 97% of global charging installations yet to come. By 2030, the total addressable market for EV chargers is expected to be $102.0 billion.

Wallbox NV’s products include “Pulsar Plus,” a smart charger for homes (including multifamily residences); “Quasar 2,” a bidirectional charger that allows users to charge their cars and power their homes; and “Supernova,” a DC fast-charger (DCFC) specifically designed for North America. The company also sells a variety of accessories.

The Supernova can be found in parking lots, highway rest stations, and city streets. It adds up to 120 miles of driving range to an EV in less than 15 minutes.

Record First-Quarter Results

For the first quarter ended March 31, Wallbox announced that its revenue increased by 192% to a record €28.3 million (US$29.8 million). (Source: “Wallbox Announces Record First Quarter 2022 Financial Results,” Wallbox NV, May 11, 2022.)

The record revenue was fueled by a 180% year-over-year increase in charger sales to approximately 51,000 units. The company achieved a gross margin of 41.4%, topping internal forecasts.

Enric Asuncion, Wallbox NV’s CEO, noted, “Despite a complicated geo-political backdrop and continued global supply chain disruptions, Wallbox continues to perform exceptionally well and exceeded expectations in the first quarter of 2022.” (Source: Ibid.)

For the second quarter of 2022, the company expects to report revenue in the range of €35.0 to €38.0 million, representing a year-over-year growth rate in the range of 100% to 115%. Wallbox NV also expects to report a gross margin for the second quarter of approximately 40%.

For full-year 2022, Wallbox expects to report full-year revenue between €175.0 and €205.0 million, representing year-over-year growth between 145% and 190%.

Analyst Take

What’s not to like about what’s been going on at Wallbox NV?

The company continues to report high sales figures, it recently reported record quarterly revenue, and it’s expanding its international presence. Because of Wallbox NV’s in-house manufacturing facilities, it has been able to manage global supply chain issues.

That momentum is expected to continue, which is good news for Wallbox stock investors.