UBS maintains EVgo stock rating, citing upcoming catalysts

Published 17/06/2025, 15:54
UBS maintains EVgo stock rating, citing upcoming catalysts

UBS reiterated a Buy rating and $5.00 price target on EVgo, Inc. (NASDAQ:EVGO) following the company’s first-quarter earnings report released on May 6, 2025. The stock, currently trading at $4.65, has shown remarkable momentum with a 118.57% gain over the past year. According to InvestingPro analysis, EVgo’s Fair Value suggests the stock is fairly valued at current levels.

The research firm revised its adjusted EBITDA estimates for EVgo to $3.5 million for 2025, $36.4 million for 2026, and $61.8 million for 2027. These figures represent slight decreases from previous projections of $4.4 million, $38.2 million, and $63.2 million respectively. InvestingPro data shows the company’s current EBITDA stands at -$64.28 million, with analysts expecting 38% revenue growth this fiscal year.

UBS identified EVgo as its preferred electric vehicle charging investment due to several potential upcoming catalysts. These include progress on additional Department of Energy loan disbursements that could provide the company with additional capital.

The firm also highlighted its expectation that EVgo will achieve its first positive adjusted EBITDA quarter in the second quarter of 2025, marking a significant milestone in the company’s path toward profitability.

The adjusted EBITDA estimate revisions have prompted corresponding changes to UBS’s adjusted earnings per share forecasts for EVgo, though the firm maintained its overall positive outlook on the stock.

In other recent news, EVgo Inc. reported impressive first-quarter 2025 earnings, with revenue reaching $75.3 million, surpassing the consensus estimate of $71.4 million. This marks a 36% increase compared to the same period last year. The company also reported a narrower-than-expected loss per share of $0.09, better than the forecasted $0.11 loss. EVgo’s guidance for the second quarter projects revenue between $340-380 million, with a focus on achieving Adjusted EBITDA breakeven in 2025.

In addition to financial results, EVgo announced the addition of 25 million shares to its 2021 Long Term Incentive Plan, aimed at attracting and retaining top talent. The company also secured a second advance of $19 million from its $1.25 billion loan guarantee with the U.S. Department of Energy. Analyst firm Stifel maintained a Buy rating on EVgo, with a price target of $8.00, citing the company’s strong performance and strategic direction.

Morgan Stanley (NYSE:MS) initiated coverage on EVgo with an Equalweight rating and a $4.00 price target, highlighting both the company’s growth potential and existing risks. The firm’s analysis reflects a balanced view of EVgo’s valuation considering these factors. EVgo continues to expand its charging network, adding over 180 new operational charging stalls and ending the quarter with a total of 4,240 stalls.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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