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On Monday, Cantor Fitzgerald reiterated its Overweight rating on EVgo Inc. (NASDAQ:EVGO) with a price target of $8.00, above the current price of $2.76. The affirmation follows recent discussions with EVgo’s Chief Financial Officer, Paul Dobson, who outlined the company’s ambitious growth strategy and financial details at an industry conference. According to InvestingPro data, analyst targets range from $3 to $12, with the stock currently trading slightly below its Fair Value.
According to the research firm, EVgo’s expansion plans are robust, with a target to construct 7,500 new charging stalls over the next five years. This initiative is supported by a substantial $1.25 billion loan from the Department of Energy (DoE), aimed at nearly tripling the company’s current count of charging stations. The move is part of a broader effort to scale up infrastructure to meet the accelerating demand for electric vehicles (EVs).
Paul Dobson highlighted the company’s strong utilization rates, which averaged 24% in the fourth quarter. He also shared aspirations to push this figure to around 30%. The high use of EVgo’s existing infrastructure reflects the growing trend of EV adoption and the subsequent need for more charging options. This growth trajectory is supported by EVgo’s impressive revenue growth of nearly 60% in the last twelve months, as reported by InvestingPro. The company maintains a healthy current ratio of 1.84, indicating strong ability to meet short-term obligations.
Cantor Fitzgerald’s analysis suggests that the demand for EV chargers is currently exceeding supply. This gap in the market represents a significant opportunity for EVgo, especially considering the current trading levels of its shares. The firm’s positive outlook on EVgo is based on these strategic growth plans and the company’s performance metrics.
EVgo’s focus on expanding its charging network comes at a time when the EV market is seeing substantial growth. With governments and consumers increasingly prioritizing sustainable transportation, the need for extensive and reliable charging infrastructure is more pressing than ever. EVgo’s initiative to increase its charging stall footprint aligns with this market trend and positions the company to capitalize on the expanding EV landscape. For deeper insights into EVgo’s growth potential and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, EVgo, Inc. reported its fourth-quarter revenue for 2024 at $67.5 million, a 35% increase from the previous year, but it missed earnings expectations with a loss of $0.11 per share. This revenue growth was supported by the addition of 480 new charging stalls, which brought the total to 4,080 operational stalls. Benchmark analysts maintained a Buy rating with a $12 price target, noting the strong network throughput of 84 gigawatt-hours, which exceeded their estimates. Stifel analysts, while reducing their price target to $8 from $10, continued to recommend a Buy rating due to the company’s stronger-than-expected gross margins.
Cantor Fitzgerald also maintained an Overweight rating and an $8 price target, emphasizing EVgo’s above-industry-average charger utilization rate of 24%. The company plans to deploy up to 7,500 new charging stalls, backed by a $1.25 billion Department of Energy loan. Analysts from Cantor and Benchmark highlighted EVgo’s potential to achieve EBITDA breakeven in 2025, with projections of over $30 million in EBITDA by 2026. The reaffirmation of the DOE loan and the company’s aggressive expansion plans are seen as key factors supporting EVgo’s growth trajectory in the electric vehicle charging market.
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