EV charging stock Wallbox could return 60% in 12 months: BofA

Wallbox NV (NYSE: WBX) hasn’t been all that exciting for its shareholders this year but a Bank of America analyst expects the next twelve months to be incredibly rewarding.

On Wednesday, Marianne Bulot reiterated her buy rating on the EV charging stock that she says could climb to $5.50 – about a 60% upside from here.

She’s constructive on Wallbox shares because the management recently confirmed that inventory levels at distributors will return to normal in the back half of 2023. Her research note also reads:

We think gross margin could further rebound by the end of 2023 with new products sales accelerating and better production costs management.

Last week, Wallbox reported a 90 bps increase in profit margin for its first financial quarter.

The Bank of America analyst likes Wallbox NV for its history of outperforming its peers. In 2022, it grew more than 4 folds in percentage terms versus the market at large.  

Other reasons cited for the bullish view on this EV charging stock include the company’s new 150 kW and 180 kW superchargers that are scheduled to release in the second half this year. Bulot said in her research note:

Wallbox is one of the few manufacturers planning U.S. production capacity for 350 kW+ chargers to meet big U.S. political ambitions for a national fast charging network.

To that end, President Biden’s Inflation Reduction Act, she’s convinced, will also be a meaningful tailwind for Wallbox shares that are trading about 45% down versus their year-to-date high at writing.