David Arcaro, an analyst from Morgan Stanley, maintained the Hold rating on EVgo. The associated price target remains the same with $4.50.
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David Arcaro has given his Hold rating due to a combination of factors related to EVgo’s recent performance and future outlook. The company reported strong year-over-year growth in operational metrics, such as throughput and utilization rates, reflecting its efforts to expand its market reach. However, the financial results for the quarter were mixed, with improvements in gross margins but uncertainties surrounding future revenue streams.
Another factor influencing the Hold rating is the potential impact of an autonomous vehicle partner exiting the market. This event could lead to a one-time revenue benefit, but it also introduces uncertainty regarding future partnerships. Additionally, while EVgo has revised its financial guidance to account for this scenario, the changes suggest a cautious approach to capital expenditure and stall buildout. These elements combined suggest a balanced outlook, warranting a Hold rating as the company navigates both opportunities and challenges.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $3.50 price target.