EVgo’s Growth Potential Highlighted by Positive EBITDA and Revenue Projections, Contract Gains, and Increased Price Target

Jon Windham, an analyst from UBS, maintained the Buy rating on EVgo. The associated price target was raised to $5.90.

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.