Evgo Inc. (NASDAQ: EVGO), is up by about 50% after a JPMorgan Analyst issued a bullish note to its favor.
Bill Peterson has upgraded the electric car charging company from “underweight” to “overweight”. He said that its shares may rise to $7. This would be an increase of about 80% over its previous closing price.
In a Thursday research note, he said that Evgo’s owner-operator fast charging model scales well in the current muted EV climate with increased utilization and higher charge rates.
Evgo’s stock was trading at $6.0, the highest price of all time. Crispus Nyaga, our market analyst, also believes that the share price of Evgo is a good risk-reward combination.
Evgo has seen a sharp increase in its stock.
Evgo’s shares, which at one time traded for less than $2.0 only, had a rough first half in 2024. The slowdown of electric vehicles adoption was one factor that affected EV stock prices.
The share price recovered since then. JPMorgan’s analyst believes they will continue to rise after California-based firm received conditional commitment from Department of Education for more than 1 billion in loan guarantees.
EVGO plans to use the debt funding for the expansion of their public fast charging network in the United States.
Bill Peterson says:
Evgo will continue to benefit from a higher usage of every charger in its network. This is especially true if other charging networks cannot deploy chargers because there’s no demand.
Evgo does not pay dividends at the moment.
Evgo Inc has yet to make a profit
Bill Peterson is not so bullish about other EV infrastructure firms as he was on Evgo.
JPMorgan’s analyst has a positive view of EVGO because the company reported a revenue record for its second-quarter in August, which was $66.6million. Badar Khan, the chief executive of the company at the time said:
As an owner-operator, we are well positioned to take advantage of the record demand that is being seen in this industry. This momentum is expected to result in strong profits for our investors.
The Department of Education offers a loan guarantee that makes it even more attractive to buy.
Investors should also be aware that Evgo isn’t yet profitable and isn’t expected to do so anytime soon.
While Evgo may be an excellent investment in the future, it will be volatile for a while.
This article This EV Stock Could Jump 80% In 12 Months, JP Morgan Analyst Says may be updated as new information becomes available
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