Tritium DCFC Ltd (DCFCQ)

[WeTheMarket]

2 “Strong Buy” EV Charging Stocks Trading Under $10
Michael Marcus, Feb 03, 2022, 09:22 AM
https://www.tipranks.com/news/article/2-strong-buy-ev-charging-stocks-trading-under-10?utm_source=stck.pro&utm_medium=referral

Let’s talk a bit out about EV stocks. Electric vehicles are not a new technology – in fact, they date back almost to the earliest days of the automobile – but today’s materials, batteries, and electronics have brought them into their own, as a more mature technology. It’s clear that EVs are here to stay. What is less obvious is that they are bringing a host of ancillary tech and services with them. Prominent among these are charging companies.

The charging network is the vital infrastructure that will make pure battery-powered EVs fully viable. The political will exists to expand current networks into full national coverage, and an array of companies are moving in to design, build, and install those networks, as well as commercial charging locations and individual stations.

For investors who don’t want to break the bank, and are interested in EVs and EV charging, there are plenty of EV charging stocks available for under $10 per share. We’ve used the TipRanks database to look up a couple of these stocks. They combine that low entry cost with a Strong Buy consensus rating and potential to double in the coming year. Let’s take a closer look.

Volta (VLTA)

The first stock we’re looking at, Volta, ...

Tritium (DCFC)

The second stock on our list is Australia-based Tritium, an EV charger company aiming at the global market. Tritium, which was founded in 2001, manufactures both the hardware and software for DC fast chargers, the charge stations that offer users the shortest recharging times for their EVs. DC fast charging stations are capable of recharging most consumer EVs to 80% in 15 to 45 minutes.

Tritium already boasts that is has 6,700 chargers installed in 41 countries. More importantly, its charging stations are capable of operating in a wide range of temperatures, from -31 F (-35 C) to 122 F (50 C); this is a key point in Tritium’s favor, as ambient temperature is known to affect EV charging times and efficiency.

As 2022 opened, Tritium raised new capital for operations by going public – the company completed a SPAC combination with Decarbonization Plus Acquisition Corporation II on January 13, and the DCFC ticker debuted on Wall Street, on the NASDAQ index, on January 14. The stock closed on its first day of trading at $9.22, and has since fallen by 29%. Tritium realized US$403 million from the SPAC combo, and currently shows a market cap of US$995 million.

In the weeks since the SPAC completion, Tritium continued to move on the expansion of its global footprint. The company on January 28 announce a partnership with Electromin, a Saudi company that provides e-mobility solutions in the Middle East and Africa. The agreement is in the context of the Saudi government’s push to increase the use of electric vehicles.

Initiating coverage of Tritium for Raymond James, 5-star analyst Pavel Molchanov points out key advantages in the company’s technology: “To propel the light-duty electric vehicle adoption curve, more and faster infrastructure is essential. DC fast charging is already commonplace, and ultra fast technology represents the leading edge. Tritium provides these two types of chargers — not the slower, “old school” Level 2. As with all clean tech hardware, some commoditization is inevitable, but the ramp-up of the company’s service and software offerings should give the margin profile a boost.”

Molchanov believes this technological advantage puts Tritium in a solid position going forward, and he gives the stock an Outperform (i.e. Buy) rating. His $10 price target indicates confidence in an upside of ~54% for the year ahead. (To watch Molchanov’s track record, click here)

Wall Street generally is even more bullish than Molchanov on this stock. DCFC gets a Strong Buy consensus rating based on 3 reviews which are unanimous in their positive outlook. The stock is currently trading for $6.50; its average price target of $14.33 implies a robust 120% upside for the year ahead.