Bank of America downgraded electric vehicle charging company Wallbox by double its buy rating and expects its stock to rise more than 60% in the next 12 months to $5.50 per share. The Barcelona-based company makes home EV chargers and public charging systems for the North American and European markets. However, the investment bank analyst’s bullish outlook came with a cut in his price target from $8 per share. The stock, which trades on the New York Stock Exchange, has fallen 70% over the past year. The closing price on Monday was $3.40 per share. According to the bank’s analysts, one of the biggest sticking points for the stock’s underperformance has been high inventory levels at distributors of the company’s products. Company management has addressed the issue and indicated that inventory levels may return to normal in the second half of the year. WBX 5Y line Bank of America analysts also pointed to other green shoots for the company. Bank of America equity analyst Marianne Bulot said Wallbox boosted its margins by 90 basis points in the first quarter of this year despite the challenging trading environment. “We think gross margins could rebound further by the end of 2023 … as new product sales accelerate and better production cost management,” she said in a May 5 research note to clients. 45,000 charging unit-years were delivered in the quarter, compared with 48,000 in the fourth quarter of last year. Despite the quarterly decline, the company reported a 24% increase in annual revenue. Wallbox has also outperformed its peers historically, growing 100% through 2022, compared to a 23% growth rate for the overall market. While growth has slowed this year, the problem is not unique to Wallbox, according to the investment bank. Growth has slowed, for example, as adoption of electric vehicles has slowed due to supply chain disruptions, the bank added. Bulot also expects the company’s fundamentals to improve in the second half of the year with the launch of the new 150kW and 180kW superchargers. Bank of America estimates that Wallbox has already begun manufacturing the devices and will benefit from US subsidies in the Lower Inflation Act. “We see outperforming the market, especially the US positioning should drive 75% (annual) revenue growth to 2025,” Bulot said. “Wallbox is one of the few companies planning to produce 350kW+ chargers in the US One of the manufacturers to meet US political ambitions for a nationwide fast charging network. Our Buy (rating) is based on growth and gross margins well above peers and a differentiated US market position.”