Why EVgo Shares Are Falling Today

EVgo Inc EVGO is trading significantly lower Monday following negative analyst coverage from Credit Suisse.

Credit Suisse analyst Maheep Mandloi downgraded EVgo from an Outperform rating to a Neutral rating and raised the price target from $11 to $17.

Related Link: Credit Suisse Downgrades EVgo Citing Valuation

Mandloi cited valuation concerns saying the stock has already priced in benefits from the infrastructure plan and expanded partnerships with General Motors Co GM and Uber Technologies UBER.

EVgo has a deal with General Motors in which it will be setting up 3,250 high-powered DC fast charging stations by 2025.

While the company has first-mover advantages, it also faces competition from new entrants in a capital intensive industry, according to the Credit Suisse analyst. 

EVgo is a public fast charging network for electric vehicles powered by renewable energy.

EVGO Price Action: EVgo has traded as high as $19.58 and as low as $7.17 over a 52-week period.

The stock was down 13.40% at $16.35 at time of publication.

Photo: Noya Fields from Flickr.