Wallbox NV: Wall Street Thinks This Overlooked EV Stock Can Double

Wallbox NV: Wall Street Thinks This Overlooked EV Stock Can Double

Investors Should Keep an Eye on Wallbox Stock

While many investors are excited about the growth prospects of electric vehicle (EV) manufacturer stocks, they might want to also consider EV infrastructure stocks. EV charging stocks will likely experience massive gains as the adoption of EVs takes off.

According to one study, EVs made up just four percent of global passenger car sales (about 10 million vehicles) in 2020, but that’s expected to increase sharply. (Source: “Electric Vehicle Outlook 2021,” BloombergNEF, last accessed December 20, 2021.)

It’s estimated that EVs will reach about 16% of passenger car sales by 2025. That figure is expected to rise to 34% by 2030 and to 70% by 2040.

I imagine that, when the first gas-powered vehicles hit the road, drivers were concerned about running out of gas. It’s not as if roadside gas stations popped up overnight. That same anxiety holds true for today’s EV drivers—but things are changing.

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One company that’s addressing the expanding EV infrastructure market is Wallbox NV (NYSE:WBX), a smart EV charging and energy management company.

The company’s near- and long-term growth prospects are huge. Wallbox expects its revenues to increase from $24.0 million in 2020 to $2.1 billion in 2027, expanding at a compound annual growth rate (CAGR) of 90%.

Wall Street is on board with WBX stock. Of the analysts providing a 12-month share-price forecast for Wallbox NV, their average target is $25.33 and their high estimate is $29.00.

This represents potential gains from Wallbox stock of 75% and 102%, respectively. Even the analysts’ low estimate of $22.00 points to market-trouncing gains of 53%.

Chart courtesy of StockCharts.com

About WBX Stock

Many investors haven’t heard of Wallbox NV. That’s because Wallbox stock only went public in early October.

The company has been in business since 2015, however, and it launched its first product in 2016. (Source: “Investor Presentation: June 2021,” Wallbox NV, last accessed December 20, 2021.)

Since then, Wallbox’s smart charging technology has garnered a lot of attention and has won numerous awards.

The company has three manufacturing facilities, nine offices on three continents, and customers in 80 countries. Wallbox NV has sold more than 200,000 units, but the company’s in-house production capacity at its two factories in Barcelona, Spain stands at 500,000.

That production number is expected to rise in 2022 when the company opens a 130,000-square-foot manufacturing facility in Arlington, TX. (Source: “Wallbox to Establish its First U.S. EV Charging Systems Manufacturing Facility in Arlington, Texas,” Wallbox NV, September 1, 2021.)

The new facility should have enough manufacturing capacity to support Wallbox North America’s manufacturing needs for the next decade. Production at the Arlington facility is expected to start during the second half of 2022. The company is forecasting a manufacturing capacity at the facility of 290,000 units annually by 2027 and 500,000 units by 2030.

In September, Wallbox acquired Electromaps, the leading public charging platform in Southern Europe. (Source: “Wallbox Acquires Electromaps, the Leading Public Charge Platform in Southern Europe,” Wallbox NV, September 8, 2021.)

Moreover, back in 2018, Wallbox launched a joint venture with Changchun FAWSN Group Co., Ltd., which is part of one of the world’s biggest automobile makers. The goal of the venture was to produce 50,000 EV chargers for China. (Source: “Letter to Shareholders: Q3 Fiscal 2021,” Wallbox NV, November 4, 2021.)

Wallbox’s product portfolio includes “Quasar,” a direct current bidirectional charger for home use; “Supernova” and “Hypernova,” direct current fast and ultrafast chargers for public use; alternating current charging solutions; and smart energy management software. (Source: “Investor Presentation: June 2021,” Wallbox NV, op. cit.)

Through the cloud-based app “MyWallbox,” users can manage their chargers in real time. They can even lock it to ensure it isn’t being used by anyone else. Users can also use “Amazon Alexa” or “Google Assistant” to control and monitor their chargers.

Wallbox NV’s chargers are compatible with all EVs currently on the market.

Great Q3 Results

In early November, Wallbox announced its first quarterly results as a public company.

The company’s third-quarter 2021 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: Ibid.)

In Germany, which is the largest EV market in Europe, Wallbox’s year-to-date revenue was up by more than 540% compared to its full-year 2020 revenue. In the UK and France, the company’s year-to-date revenue outperformed its full-year 2020 revenue by 63% and 50%, respectively.

The third quarter was a “breakout” period for Wallbox NV in the U.S., with $1.9 million in revenue, bringing the company’s year-to-date revenue to $3.7 million.

The company retained its position as one of the best sellers of EV chargers on “Amazon.com” and as Amazon’s choice for the category. As a result, this channel generated $1.3 million in revenue in the third quarter, bringing its year-to-date total to $2.4 million.

Wallbox NV sold 26,000 chargers in the third quarter, bringing its year-to-date charger sales to more than 66,000.

“In addition to the growing demand and consumer preference for our products, our ability to manage global supply chain issues successfully has enabled us to sustain strong momentum,” said Jordi Lainz, CFO. (Source: “Wallbox Announces Third Quarter 2021 Revenue 16% Above Budget Expectations,” Wallbox NV, November 4, 2021.)

“Thanks to our vertically integrated supply chain and in-house engineering and validation, we have been able to continue production over the last quarter. We continue to run a disciplined business, outpacing market growth and minimizing headwinds to generate value for shareholders.”

Wallbox’s management team reaffirmed their full-year 2021 revenue guidance of $79.0 million.

Analyst Take

Wallbox NV is at the forefront of the EV charging space. It reported strong third-quarter and year-to-date financial results, reaffirmed its full-year guidance, and has a solid balance sheet.

With its global offices, the company is poised to capitalize on the burgeoning EV market in Europe, China, and the U.S.

Although the world is in the early stages of transitioning to EVs, Wallbox NV has already made its presence felt. Best of all, WBX stock is just getting started.