Beam Global (BEEM)

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Is Beam Global Stock Oversold?

Like many electric vehicle plays, Beam Global (NASDAQ:BEEM) has been unplugged. With its share price now cut in half from its New Year's Eve peak, investors have a great opportunity to jump in on a clear EV charging leader.

All fours firms that cover Beam Global have maintained 'buy' ratings. Last month Maxim Group reiterated its 'buy' rating with a $90 price target. This suggests the stock can more than double from here.

While the market may have been exuberant in bidding up some of the EV names, its easy to understand why the valuations got to where they were. The global growth opportunity is huge in the EV space and EV infrastructure in particular. As the world pushes towards carbonless fuels and even traditional automakers move towards EV production, demand for EV charging solutions is likely to intensify.

Look no further than the U.K. which recently announced plans to phase out the sale of petrol and diesel vehicles by 2030. The plan includes government grants for homeowners and businesses that can be put towards the installation of EV charging stations as well as additional funding to incentivize the purchase of zero emission vehicles.

And while Beam Global's prospects in U.K. may be limited by homegrown competitors, it has ample opportunity to thrive in the U.S. market. The company's solar-based EV ARC product has been well received by the market. It provides sustainable EV charging in minutes in sharp contrast to competitors' electricity-based offerings which can take months to deploy by the time proper permits are obtained and construction is completed. The EV ARC's other advantage is that it can provide power during cloudy weather conditions or times when the electricity grid goes down.

Beam Global's customer list of government agencies and blue-chip corporations is impressive—and it has just scratched the surface on a massive growth opportunity in EV charging. The current weakness in the stock offers a great chance for long-term growth investors to power up their portfolio.