EVgo Growth Dampened By DOE Loan And EV Incentive Uncertainty, Analyst Says

J.P. Morgan analyst Bill Peterson reiterated the Overweight rating on EVgo Inc. EVGO, lowering the price forecast to $5 from $6.

The analyst suggests that EVgo, a prominent operator of a DC fast-charging network in the U.S., is poised for substantial revenue growth in the coming years.

This growth will be driven by factors such as increased charger utilization, higher charge rates, and a growing network footprint, which could be further bolstered by a potential Department of Energy loan, even in a market with slower EV adoption.

Peterson writes that the company has formed valuable and expanding partnerships with car OEMs, ride-share services, and autonomous driving fleets, positioning it for success in the evolving electric vehicle landscape.

Also Read: Canada ‘Had Enough,’ Claps Back At US With $20 Billion In Retaliatory Tariffs: Foreign Affairs Minister

The analyst notes that despite EVgo’s modest share recovery in a challenging demand and financing environment, the stock has been weighed down by concerns about potential impacts from Trump’s economic policies, the future of EV funding programs like the IRA/BIL, and the safety of its Department of Energy (DOE) loan.

While the company’s fundamentals remain solid, investor sentiment has been cautious, with fears about the need for “dilutive capital” and uncertainty surrounding EV incentives and safety of its loan. The stock is expected to stabilize only once EVgo demonstrates loan security and clarity on EV incentives.

Peterson lowered FY25 revenue estimates to $350 million from $354 million. FY26 revenues are expected to be $475 million, up from prior $436 million.

Price Action: EVGO shares are trading lower by 2.59% to $2.445 at last check Wednesday.

Read Now:

• Alibaba Chair Says AI Total Addressable Market Is $10 Trillion, Expects Benefits Via Its Cloud Business

Photo courtesy: Shutterstock.