EVgo's Q1 Performance Sparks Optimism, Analyst Upgrades Stock

Cantor Fitzgerald analyst Andres Sheppard upgraded the shares of EVgo Inc EVGO from Neutral to Overweight and lowered the price target from $5 to $4.

EVGO reported a first-quarter FY24 sales jump of 118.2% year-on-year to $55.16 million, beating the analyst consensus estimate of $52.389 million. EPS of $(0.09) beat the analyst consensus estimate of $(0.14).

EVgo also announced that Olga Shevorenkova will be stepping down as Chief Financial Officer and departing the company, effective on or about May 31.

Charger utilization average rate was ~19% in 1Q24, and average daily network throughput per stall grew to 193 kWh.

This resulted in a total network throughput of 53 GWh, which represents a 194% increase Y/Y.

EVGO’s Plugshare-registered users increased to more than 5 million as of 1Q24 (vs. ~4.6 million in 4Q23), and the company also added ~109,000 new customer accounts in the quarter, said the analyst.

The management reaffirmed its target to achieve breakeven Adj. EBITDA in 2025 and the FY24 revenue guidance of $220 million – $270 million.

The analyst sees the above points as encouraging, and similarly, both the utilization rate and network throughput continue to increase, which, in the analyst’s view, provides further validation to EVGO’s charging stalls and the company’s business model.

The analyst models EVGO eXtend to constitute about 35% of total revenue in FY24 and for the company to aggressively pursue additional NEVI awards.

With EVGO’s shares down ~51% YTD (vs. SP500 flat), the analyst upgraded the stock based primarily on valuation.

Price Action: EVGO shares are trading higher by 9.7% at $1.92 at the last check Thursday.

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