The Blink Charging stock (NASDAQ:BLNK) has been a success story over the last two years. The price gained 3,000% in 2020. Following that, 2021 saw the price gain 55% to $64.50 and drop 40% to $25. Now at a price of $26, we think this is a great risk to reward.
Blink Charging provides fast, level 2 EV charging stations and network for homes and businesses. The company has a market capitalisation of $1.1B. The company has deployed over 30,000 charging ports in 13 countries. With global EV purchases forecasted to rise to 10 million vehicles by 2025 from approximately 2 million in 2019, the Company has established key strategic partnerships for rolling out adoption across numerous location types.
EVs are hot
The EV sector has been in the spotlight as this year gets underway. Tesla announced their production and delivery numbers for Q4 2021 and the full year results. The year saw 930,422 vehicles made (majority of those being the cheaper Model 3 and Model Y) with 936,172 being delivered. These were very impressive and have strengthened Teslas lead as the top EV maker. The stock price for Tesla rose 13.5% yesterday.
Similarly, Ford announced today that they are planning to nearly double all electric F-150 Lightning production to 150,000 units annually.
These impressive numbers from Tesla and Ford bode well for Blink Charging. EV demand is continuing to grow. This will only be good news for BLNK who can capitalise as an already established name in the EV charging sector.
Along with a great thesis for Blink Charging to ramp up their growth throughout the year, the chart also provides us a great buying opportunity with low risk. The 52-week-low for BLNK is $25. The price is currently $26.06. When TSLA rallied in price to $1240, BLNK was at $35. The price continued from this to $49, the highest it had been since February of last year.
Low risk, High reward
BLNK currently offers a very low risk with a great reward, both short term and long term. Short term, EV momentum could help this stock rally away from strong support just below. $35 could be reached over the coming weeks. Longer term, the recent news from Tesla and Ford make this a great investment to profit from the EV boom, which looks likely to continue. Over this year, I think we could see all-time highs from January 2021 tested.
Also to note, BLNK has a 35% short interest as per our data. A strong move up would force many short sellers to cover and draw more attention as the price quickly rises above.
AlphaPicks does not currently own any of the mentioned stocks. To buy crypto and shares, register here with our preferred partner, EToro.