With growing demand for electric vehicle charging, EVgo (SYM: EVGO) could accelerate higher.
According to JP Morgan, which upgraded EVGO to an overweight rating with a $7 price target:
“Unlike hardware-software peers, EVgo’s fast charging owner-operator model has been scaling well with higher utilization and charge rates in the current muted EV environment,” they said, as quoted by CNBC. “EVGO, which generates revenue on every kW of electricity dispensed to an EV driver, is expected to continue benefitting from higher utilization on every charger on its network, especially if competitor charging networks are unable to deploy chargers.”
We also have to consider that according to the National Renewable Energy Laboratory, we’ll need 28 million EV charging ports set up to support the 33 million EVs the group believes will be on the road by 2030. All of which should be a powerful catalyst for EVGO.
Better, earnings haven’t been too shabby.
In its most recent quarter, EVGO’s EPS loss of 10 cents beat by two cents. Revenue of $66.6 million, up 31.6% year over year, beat by $7.24 million. The company also noted it was “Raising the midpoint of total revenue guidance by $10 million with total revenue guidance of $240 – $270 million,” as noted in its earnings release.
