ChargePoint Holdings, Inc. (NYSE:CHPT) shares are trading lower today. J.P.Morgan analyst Bill Peterson outlined key expectations for the company, including guidance and industry trends, ahead of the company's second-quarter earnings release on September 4th.

The analyst expects ChargePoint's results to align with guidance but anticipates third-quarter guidance may fall below consensus due to industry headwinds and a cautious near-term outlook.

While the second half could show improvement, management must clarify its profitability path under various demand scenarios, especially if revenue growth remains flat or declines, says the analyst.

Peterson adds that investor skepticism is rising as peers in the U.S. and Europe report negative trends, with no recovery in the non-China EV market.

The analyst further writes that investor sentiment could improve if management confirms that the first half represents the year's trough, supported by typical seasonality and slower commercial customer deployments, along with positive growth prospects heading into 2025.

The analyst maintained an Overweight rating for the company, seeing upside potential if management successfully executes in this difficult market.

Investors can gain exposure to the stock via SPDR S&P Kensho Intelligent Structures ETF (NYSE:SIMS) and Invesco WilderHill Clean Energy ETF (NYSE:PBW).

Price Action: CHPT shares are down 3.54% at $1.7650 at the last check Wednesday.

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