While government initiatives to encourage the construction of electric vehicle (EV) charging stations to help phase out fossil-fuel-powered vehicles has been a boon for most EV charging stocks, Blink Charging (BLNK) has not been able to capitalize on the tailwinds. And given that the stock is overvalued at its current price, it implies notable downside risk in the near term. So, we think it’s best that investors avoid the stock for now. Read on.Electric vehicle charging equipment provider Blink Charging Co. (NASDAQ:BLNK), based in Hollywood, Fla., operates residential and commercial EV charging equipment in the United States. Its shares have risen 439% over the past nine months on the back of continued progress in the deployment of charging stations and optimism surrounding President Biden’s commitment to boost EV infrastructure.
However, BLNK’s stock price has declined 2.9% year-to-date and 16.2% over the past six months. In fact, the stock is now trading 35.7% below its 52-week high of $64.50, indicating short-term bearishness.
BLNK’s stock looks highly overvalued at its current price. Although the hype surrounding the EV charging industry has helped the stock gain 27.4% over the past month, BLNK has not yet been able to generate substantial profits. In addition to that, its weak growth prospects are a major concern, given the intense competition from established EV players in the market.