Jon Windham, an analyst from UBS, maintained the Buy rating on EVgo. The associated price target was raised to $5.90.
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Jon Windham has given his Buy rating due to a combination of factors that highlight EVgo’s potential for growth and profitability. One of the key reasons is the anticipated positive impact on adjusted EBITDA, with guidance suggesting a range that includes a positive midpoint. This is supported by the company’s updated revenue estimates for the coming years, which have been increased to reflect recent results and expectations of contributions from a significant contract close-out.
Additionally, the potential gain from this contract close-out is expected to significantly boost both revenue and adjusted EBITDA, providing a strong upside to the company’s financial outlook. The increase in EVgo’s price target to $5.90 from $5.40 further underscores the positive sentiment, driven by a consistent EV/sales multiple applied to future sales projections. The operational growth, demonstrated by a 25% year-over-year increase in stalls, and a 37% year-over-year revenue growth, also contribute to the optimistic outlook for EVgo’s stock.