Blink Charging Co (BLNK) offers electric vehicle (EV) charging equipment and services.

The Blink Charging company is betting on a high rate of electric vehicle adoption, fueled by favorable government policies. However, the stock could remain range-bound for the rest of 2021 because of uncertainty surrounding the Delta variant and significant expenses borne by the company.

Based on the above factors, I remain Neutral on the stock. (See BLNK stock chart on TipRanks)

Let’s take a look at the company’s financial performance and changes in its key risk factors that investors should know.

Blink Charging Financial Performance

Now let's dive into the company’s financial performance for the second quarter.

Blink Charging reported impressive revenue growth, exceeding analysts' expectations.

Revenues were $4.4 million, up 177% year-over-year, and exceeding the consensus estimate of $2.44 million. Strong product sales and expansion of the company's charging station network drove revenue growth.

On the other hand, the company posted a loss of $0.32 per share, which was higher than the consensus expectation of $0.16 per share. Last quarter, the company posted a loss of $0.11 per share.

The company's profitability was impacted by an increase in compensation and general and administrative (G&A) expenses.

Blink Charging Risk Factors

According to the new Tipranks Risk Factors tool, Blink’s main risk category is Finance & Corporate, which accounts for 48% of the total 27 risks identified for the stock. The next two major risk factor contributors are Tech & Innovation and Production, both at 15% each.

Since June, the company has added one new risk factor, relating to Accounting and Financial operations. The company said, "We have experienced substantial net losses, and we expect to continue to incur substantial losses for the foreseeable future." Indeed, the Finance & Corporate risk factor’s overall sector average is 37.4%, compared to Blink’s 48.1%.

Under the Macro & Political category, Blink emphasizes that the global spread of the coronavirus and the Delta version have caused a lot of worries and economic upheaval. The impact of this pandemic on the company's business is still unknown. As a result, this could have a negative influence on the organization's financial operations.

Wall Street’s Take on BLNK

Wall Street analysts are not overly enthusiastic about BLNK stock, possibly because of its financial risks. Blink Charging stock commands a Hold consensus rating, based on 1 Buy and 3 Holds.

As for price targets, the average BLNK price target is $35, reflecting a potential 12-month upside of 7.9% from current levels. 

Bottom Line

The stock of Blink Charging has increased by 328% over the past year. The company could be a worthwhile long-term investment due to its strong position in the EV charging market, expanding charging stations, and continuous work on international expansion.

Nonetheless, the stock price has dropped 5% in the last month. Moreover, the stock’s TipRanks SmartScore, which comprises 8 unique data sets, is a 5, indicating that the stock is likely to perform in line with market averages.

Additionally, the new risk the company has declared could be a cause for concern for investors.

Disclosure: At the time of publication, Shalu Saraf did not have a position in any of the securities mentioned in this article.

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The post Blink Charging Stock Facing Financial Risks appeared first on TipRanks Financial Blog.

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By: Shalu Saraf
Title: Blink Charging Stock Facing Financial Risks
Sourced From: blog.tipranks.com/blink-charging-stock-facing-financial-risks/
Published Date: Wed, 01 Sep 2021 11:20:59 +0000

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