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On Wednesday, Cantor Fitzgerald reiterated its optimistic stance on EVgo Inc. (NASDAQ: NASDAQ:EVGO) by maintaining an Overweight rating and a price target of $8.00, well above the current stock price of $2.48. The firm highlighted the company’s growing utilization rate and network throughput as key indicators of EVgo’s charging stalls’ usage and reliability. With a market capitalization of $753 million and impressive revenue growth of nearly 60% in the last twelve months, EVgo’s average charger utilization rate in the fourth quarter of 2024 was approximately 24%, which Cantor Fitzgerald believes to be above the industry average for public DC Fast Chargers (DCFCs) in North America.
The company’s reaffirmation of its Department of Energy (DOE) loan is also seen as a positive development by Cantor Fitzgerald. The loan will support EVgo’s plan to build up to 7,500 new charging stalls. In the fourth quarter of 2024, EVgo added 480 new DCFC stalls, bringing its total to 4,080 operational stalls. According to InvestingPro, EVgo holds more cash than debt on its balance sheet and maintains a healthy current ratio of 1.84, suggesting strong liquidity to support its expansion plans. While the analyst firm models a conservative estimate of EVgo installing 6,800 DCFCs out of the possible 7,500 from the DOE loan, the reaffirmation of the loan is a significant factor in their positive outlook.
Looking forward, EVgo has set targets for the expansion of its charging network. In fiscal year 2025, the company aims to add between 750 and 815 public network stalls, 50 to 85 dedicated stalls, and 450 to 550 eXtend stalls. For the following two years, EVgo’s targets increase to adding 1,050 to 1,200 stalls in FY26 and 1,350 to 1,500 stalls in FY27. With analysts projecting 61% revenue growth in FY2025, InvestingPro analysis reveals 13 additional key insights about EVgo’s financial health and market position. Discover these exclusive insights and access the comprehensive Pro Research Report, available to InvestingPro subscribers. Cantor Fitzgerald’s analysis suggests that the demand for electric vehicle (EV) charging is surpassing the supply of EV chargers, positioning EVgo favorably within the industry.
Cantor Fitzgerald’s continued bullish outlook on EVgo reflects the belief that the company is one of the best positioned in the industry to capitalize on the growing need for EV charging infrastructure. With analyst price targets ranging from $3.50 to $12.00 and the stock currently trading near its Fair Value according to InvestingPro models, EVgo’s reaffirmation of the DOE loan and aggressive expansion plans suggest potential for continued growth in the coming years.
In other recent news, Evgo Inc reported its fourth-quarter and full-year 2024 financial results, showing a significant increase in revenue despite missing earnings expectations. The company reported a Q4 revenue of $67.5 million, representing a 35% increase year-over-year, and full-year revenue of $257 million, which is a 60% increase from the previous year. However, the earnings per share (EPS) reported a loss of $0.11, which was below the forecasted loss of $0.09. Evgo’s adjusted EBITDA loss improved to $32.5 million for the full year, narrowing by $26.4 million from 2023. Despite the revenue growth, the company continues to operate at a loss, but it has increased its cash and cash equivalents to $200 million following a Department of Energy loan draw. Looking ahead, Evgo has set an ambitious revenue target for 2025, projecting between $340 million and $380 million and aims to reach EBITDA breakeven. The company plans to deploy an additional 800-900 public and dedicated stalls, with a total target of 11,000 public stalls and $1 billion in annual revenue. Meanwhile, analysts from firms such as JPMorgan and RBC Capital Markets have shown interest in Evgo’s funding strategy and progress in deploying NACS connectors, reflecting the company’s ongoing efforts to expand its infrastructure and market presence.
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