Bank of America has doubled its buy rating on electric vehicle charging company Wallbox and expects its stock to rise more than 60% over the next 12 months to $5.50 a share. The Barcelona-based company manufactures home electric vehicle chargers and public charging systems for the North American and European markets. However, the upbeat outlook from investment bank analysts was accompanied by a downside correction to the price target from $8 a share. The stock trades on the New York Stock Exchange and is down 70% over the past year. It was trading at $3.40 a share at Monday’s close. One of the biggest factors driving the stock’s underperformance, according to the bank’s analysts, is high inventory levels at distributors of the company’s products. The company’s management has addressed the issue and says that inventories are likely to return to normal in the second half of the year. Bank of America’s WBX 5Y analysts also point to other green spots for the company. Marianne Bulot, equity analyst at Bank of America, said Wallbox boosted margins by 90 basis points in the first quarter of this year despite the challenging trading environment. “We think gross margins could pick up again by the end of 2023…with accelerated new product sales and better cost management,” she said in a research note for customers on May 5. The company delivered 45,000 chargers in the first quarter of this year. year ago, compared with 48,000 in the fourth quarter of last year. Despite the quarterly drop, the company reported 24% year-over-year revenue growth. Wallbox also has a history of outperforming its peers, growing 100% by 2022 versus 23% for the overall market. According to the investment bank, although growth has slowed this year, the problem isn’t just with Wallbox. For example, the bank added that growth has slowed due to slower use of electric cars amid supply chain disruptions. Bulot also expects the company’s fundamentals to be in better shape in the second half of the year with the release of new 150 kilowatt and 180 kilowatt turbochargers. Bank of America estimates that Wallbox has already begun production of these units and will benefit from U.S. subsidies under the Inflation Reduction Act. “We see outperforming the market and especially the US position driving 75% [per annum] “Wallbox is one of the few manufacturers that plans to manufacture 350kW+ chargers in the United States in response to major U.S. political ambitions for the national fast-charging network,” Bulot said. [rating] is determined on the basis of growth rates and gross margins that are much higher than its peers and distinct position in the U.S. market.”