BofA Downgrades EVgo After Huge Rally

EVgo Inc’s EVGO stock has appreciated more than 89% in a week, following the passage of the Federal infrastructure bill and better-than-expected third-quarter results, and the risks are no longer appropriately priced in, according to BofA Securities.

The EVgo Analyst: Ryan Greenwald downgraded EVgo from Neutral to Underperform while keeping the price target at $11.

The EVgo Thesis: Although the company is well positioned to benefit from potential growth in the EV charging industry, the headwinds seem “underappreciated,” Greenwald said in the note.

“While full year guidance was raised with 3Q results, EVgo is tracking well below their charger deployment targets with an implied end of year target of 1,690 vs. 2,211 planned previously,” the analyst wrote.

“Management appears less concerned around delays, but watch for any impact if bottlenecks continue with the large majority new greenfield station installations,” he added.

Credit Suisse Downgrades EVgo Citing Valuation

Tesla Inc’s TSLA plan to open its network to competition is “another growing concern amid the broader EV penetration,” Greenwald said. “Euphoria around the latest partnerships is less warranted and pending lock up dates is another dynamic to put potential pressure on shares,” he added.

EVGO Price Action: Shares of EVgo had declined by 14% to $16.25 at the time of publication.