Fed’s Powell opens door to potential rate cuts at Jackson Hole
On Thursday, Stifel analysts adjusted their outlook on EVgo, Inc. (NASDAQ:EVGO), reducing the price target to $8.00 from the previous $10.00, while still recommending a Buy rating for the stock. The decision came after EVgo reported its fourth-quarter earnings for 2024, which showcased stronger-than-expected gross margins of 29.34%. According to InvestingPro data, the company maintains a solid financial position with a current ratio of 1.84, indicating strong liquidity to meet short-term obligations.
The company’s performance in the last quarter was highlighted by an increase in both the utilization of its charging stations and the average throughput per stall. With impressive revenue growth of 59.57% over the last twelve months, EVgo demonstrates strong operational momentum. Stifel’s analysts expressed confidence in EVgo’s potential to achieve a positive EBITDA in 2025 and to continue its expansion in the following year and beyond, though InvestingPro analysis indicates the company faces near-term profitability challenges.
EVgo’s management has also expressed optimism, particularly regarding the $1.25 billion Department of Energy (DOE) loan that is expected to remain active. This loan is set to fully fund the company’s growth strategy for the next three to five years, which is anticipated to benefit from reduced costs per stall. With a market capitalization of $774 million and a relatively high beta of 2.38, investors should note the stock’s elevated volatility profile.
In their commentary, the analysts from Stifel noted, "EVGO delivered solid 4Q24 results bolstered by stronger-than-expected gross margins. Importantly, both utilization and average throughput per stall continue to trend higher, and we remain confident in the company’s ability to deliver positive EBITDA during 2025, and continue to expand in 2026+."
The analysts concluded their assessment by reaffirming their belief that EVgo is the best-positioned pure-play EV charging company in the market, even with the revised target price of $8. They maintained their Buy rating, signaling continued support for the stock’s potential.
In other recent news, EVgo Inc. reported its fourth-quarter and full-year 2024 financial results, showing a 35% increase in Q4 revenue to $67.5 million, although it missed earnings expectations with an EPS loss of $0.11 against a forecasted loss of $0.09. Despite this earnings miss, EVgo’s full-year revenue reached $257 million, marking a 60% increase from the previous year. The company’s charging network revenues surged by 110%, supported by strategic infrastructure expansion. Analyst firms Benchmark and Cantor Fitzgerald both maintained their positive outlooks on EVgo, with Benchmark reiterating a Buy rating and a $12 price target, while Cantor Fitzgerald maintained an Overweight rating and an $8 price target. Both firms highlighted the company’s strong network utilization and strategic expansion plans as key factors in their assessments. Cantor Fitzgerald also noted the reaffirmation of EVgo’s Department of Energy (DOE) loan, which is set to support the addition of up to 7,500 new charging stalls. EVgo’s operational stalls increased to 4,080 with the addition of 480 new stalls in Q4, exceeding expectations and reflecting the company’s aggressive growth strategy. Looking ahead, EVgo aims for EBITDA breakeven by 2025 and has set ambitious revenue targets between $340 million and $380 million for the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.