As the world focuses on sustainability and reducing carbon footprints, clean tech stocks are gaining attention from investors seeking both financial returns and environmental impact.
Out of the coverage universe of JPMorgan analysts Bill Peterson, Mahima Kakani and Bennett Moore, three clean tech stocks stand out with significant upside potential, offering investors the opportunity to invest in companies at the forefront of the clean energy revolution: Blade Air Mobility Inc (NASDAQ: BLDE), ChargePoint Holdings Inc (NYSE: CHPT) and Enovix Corp (NASDAQ: ENVX).
Blade Air Mobility
Blade Air Mobility's strong first quarter performance - with better-than-expected adjusted EBITDA driven by revenue growth in MediMobility and flight margin improvements - highlights its position as a key player in the Urban Air Mobility (UAM) space.
JPMorgan's Overweight rating on Blade Air stock reflects its confidence in the company's ability to deliver on its positive EBITDA goals in 2024 and 2025. JPMorgan currently rates the company Overweight, citing its path to profitability and opportunities for margin expansion in its Passenger segment. With a price target of $5 representing an upside of 42.9%, Blade remains a preferred way to play the UAM theme.
Blade Air Mobility is an aviation company with an urban air mobility platform that provides air transportation for passengers and last-mile critical cargo. It is developing an electric vertical aircraft (EVA) to be quiet, carbon-neutral and cost-effective.
ChargePoint
While the near-term outlook for the overall EV market in North America may be muted, ChargePoint stands out as a potential beneficiary of accelerated fleet demand.
JPMorgan's Overweight rating on ChargePoint reflects its belief that owner-operators will continue to benefit from higher throughput on existing stalls, provided they can defend and grow market share.
With a price target of $5 for December 2024, representing an upside of 226.8%, ChargePoint presents a compelling investment opportunity in the clean tech sector.
ChargePoint operates an online network of independently owned EV charging stations. It also offers technology for charging electric vehicles at home.
Enovix
Enovix's recent cost reduction efforts, including layoffs at its California factory, demonstrate its commitment to improving operating efficiency. Despite these challenges, JPMorgan remains bullish on Enovix, citing the U.S. Treasury Department's guidance on claiming the IRA's Advanced Manufacturing Production Tax Credit as a potential catalyst for the stock.
With a price target of $12 for December 2024, representing an upside of 41.0%, Enovix remains a strong contender in the clean tech space.
Enovix is the developer of 3D silicon lithium-ion rechargeable batteries.
These three stocks offer investors the opportunity to capitalize on the growth potential of the clean tech sector, driven by increasing focus on sustainability and renewable energy sources. As governments and businesses around the world commit to reducing carbon emissions, these companies stand well-positioned to benefit from the shift towards a cleaner, greener future.