BofA analyst upgrades Wallbox stock to ‘buy’ as US EV sales increase

Bank of America says Wallbox, a Barcelona-based maker of electric vehicle chargers, has the potential to nearly double in valuation.

Analyst Alexander Virgo upgraded Wallbox to buy from neutral on Thursday, trimming his price target on the stock to $10 per share, down from $11.30. The new target still implies an upside of 93% from Wednesday’s close.

“With the passing of the Inflation Reduction Act in the US, Wallbox is now well positioned to benefit from the US charging infrastructure expansion,” Virgo wrote.

“We think the US will be the key growth driver in the near term, forecasting a group org sales growth of c114% YoY with North America up c640% in 2022,” wrote Virgo. “This high growth expectation compared to the US EVs sales growth (22% in 2022) is justified given Wallbox’s position in the US charging market and the accelerated ramp up in charging infrastructure.”

Virgo said the billions of dollars of incentives set forth in the Inflation Reduction Act make Wallbox’s products potentially more attractive to consumers, in part because the company is one of few producers of direct current chargers of more than 350kW in the US.

Shares of Wallbox have dropped 66% in 2022, in line with other companies operating in the EV space. Virgo said the drop creates a buying opportunity and makes the stock’s valuation more attractive. Wallbox traded more than 4% higher on Thursday.

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