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On Wednesday, Stifel analysts maintained a positive outlook on EVgo, Inc. (NASDAQ:EVGO), reiterating a Buy rating and an $8.00 price target. With the stock currently trading at $3.97, analyst targets range from $3 to $12, reflecting the market’s mixed sentiment. The firm expressed confidence in EVgo’s performance, identifying several key factors from the company’s first-quarter 2025 results that support their favorable view. According to InvestingPro data, EVgo has demonstrated impressive revenue growth of 45% over the last twelve months.
According to Stifel, EVgo has continued to surpass expectations, solidifying its status as their top choice among U.S. electric vehicle (EV) charging companies. The first quarter of 2025 revealed promising developments, including the likelihood of retaining a Department of Energy (DOE) loan and the expectation of improved margins for EVgo’s charging business. The company’s gross profit margin stands at 35.35%, though InvestingPro analysis indicates more financial metrics and insights are available for subscribers.
The analysts also noted that tariffs are anticipated to have a negligible effect on the company’s plans to install new chargers by 2025. Furthermore, EVgo’s management has reconfirmed its guidance for the year 2025, reinforcing the company’s stable outlook.
Despite a slight concern regarding slower EV sales, which could be seen as a modest obstacle, Stifel anticipates that the increasing number of EVs on the road will enhance the utilization and throughput of EVgo’s charging network. This expected rise in EV usage is seen as a positive driver for the company’s future performance.
The reaffirmation of the $8.00 price target reflects Stifel’s ongoing confidence in EVgo’s strategic direction and market position. The firm’s analysis underscores the belief that EVgo’s operational and financial milestones align with their expectations for the company’s growth trajectory.
In other recent news, EVgo reported record first-quarter 2025 earnings, surpassing analyst expectations with a narrower loss per share and higher revenue. The company posted a first-quarter loss per share of $0.09, better than the anticipated loss of $0.11. Revenue reached $75.3 million, exceeding the forecast of $71.4 million and marking a 36% increase from the previous year. EVgo’s charging network revenue grew 49% year-over-year to $47.1 million, with network throughput rising 60% to 83 gigawatt-hours. The company added over 180 new operational charging stalls, bringing the total to 4,240 stalls. Stifel analyst Stephen Gengaro expressed positive expectations for EVgo’s shares due to the solid results and reiterated guidance. Additionally, EVgo received a second advance of $19 million from its $1.25 billion U.S. Department of Energy loan guarantee to expand its fast charging network. The company is targeting adjusted EBITDA breakeven in 2025, with projected total revenues between $340 million and $380 million for the year.
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