Cantor Fitzgerald maintains EVgo stock Overweight with $8 target

On Monday, Cantor Fitzgerald reaffirmed its positive stance on EVgo Inc. (NASDAQ:EVGO), a leading electric vehicle charging network, maintaining an Overweight rating and an $8.00 price target. Currently trading at $2.82 with a market cap of $864 million, EVgo has attracted varied analyst opinions, with targets ranging from $3 to $12. The endorsement follows a recent conference where EVgo’s Chief Financial Officer, Paul Dobson, discussed the company’s ambitious expansion efforts and financial performance. According to InvestingPro data, the company has shown strong revenue growth of nearly 60% over the last twelve months.

Dobson outlined EVgo’s plans to nearly triple its network by adding 7,500 charging stalls over the next five years. This expansion is supported by a substantial $1.25 billion loan from the Department of Energy (DoE). The loan agreement is a significant step in the company’s growth strategy and aims to address the increasing demand for electric vehicle (EV) charging infrastructure. Analysts expect this expansion to drive 36% revenue growth in the coming year, as revealed in InvestingPro’s detailed financial analysis.

The CFO highlighted EVgo’s strong charger utilization rates, which averaged 24% in the fourth quarter. The company has set a goal to boost this figure to around 30%. High utilization rates are indicative of effective asset use and can reflect positively on a company’s operational efficiency and market demand for its services. With a beta of 2.38, investors should note that EVgo’s stock shows higher volatility than the broader market.

Cantor Fitzgerald’s analysis suggests that the demand for EV chargers is currently surpassing the supply. This imbalance presents a favorable market opportunity for EVgo, especially considering the company’s current stock price. The firm’s commentary underscores a bullish outlook on EVgo’s prospects in the expanding EV infrastructure market. For deeper insights into EVgo’s valuation and growth prospects, including 12 additional ProTips and comprehensive financial metrics, visit InvestingPro.

In other recent news, EVgo Inc. reported its fourth-quarter revenue for 2024 at $67.5 million, marking a 35% increase from the previous year, although it fell short of the consensus estimate of $69 million. The company also reported a loss of $0.11 per share, missing the forecasted loss of $0.09. Despite the earnings miss, EVgo demonstrated strong growth in its charging network, adding 480 new charging stalls, which exceeded expectations and brought the total to 4,080 operational stalls. Analysts from Cantor Fitzgerald and Stifel maintained an Overweight and Buy rating on EVgo, respectively, both setting a price target of $8.00. Cantor Fitzgerald highlighted EVgo’s ambitious plan to construct 7,500 new charging stalls, supported by a $1.25 billion loan from the Department of Energy. Meanwhile, Benchmark analysts held a Buy rating with a higher price target of $12.00, acknowledging the company’s robust network throughput and expansion. Stifel analysts expressed confidence in EVgo’s potential to achieve a positive EBITDA by 2025, citing stronger-than-expected gross margins and continued expansion plans. These developments reflect EVgo’s strategic efforts to capitalize on the growing demand for electric vehicle charging infrastructure.

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