Gabriel Daoud, an analyst from TD Cowen, maintained the Buy rating on EVgo (EVGO – Research Report). The associated price target remains the same with $5.00.
Gabriel Daoud has given his Buy rating due to a combination of factors that highlight EVgo’s strategic positioning and financial resilience. The company’s management has effectively addressed concerns regarding the Department of Energy (DOE) loan, emphasizing its stability and the government’s commitment to the investment, which is backed by tangible assets and consistent cash flows. This reassures investors about the continuity and reliability of the loan process.
Furthermore, EVgo is actively seeking additional non-dilutive financing to complement the DOE loan, ensuring a diversified funding strategy. This approach not only strengthens the company’s financial stability but also extends its operational runway. Additionally, the existing supply and demand imbalance in the DC fast charging market presents a significant growth opportunity for EVgo, independent of annual electric vehicle sales. This market dynamic, coupled with projected growth in electric vehicles, supports the company’s long-term growth prospects.
According to TipRanks, Daoud is an analyst with an average return of -16.8% and a 29.53% success rate. Daoud covers the Energy sector, focusing on stocks such as Matador Resources, CNX Resources, and SM Energy.
In another report released on March 11, J.P. Morgan also maintained a Buy rating on the stock with a $5.00 price target.