Investing in the stock market can be a rollercoaster ride, especially when it comes to companies in the electric vehicle (EV) industry. One such company that has caught the attention of investors is EVgo, a business that owns and operates fast electric vehicle chargers. According to JPMorgan, EVgo’s unique business model could potentially send its stock soaring.
Analyst Bill Peterson of JPMorgan recently upgraded EVgo’s shares to overweight from neutral and set a price target of $7 per share, implying more than 78% upside from the previous day’s close. While EVgo stock has experienced some volatility, with a 10% climb in 2024, it has shown resilience in the face of challenges facing the EV sector.
Unlike its hardware-software peers, EVgo’s fast charging owner-operator model has been scaling successfully, with higher utilization and charge rates even in the current muted EV environment. In addition, the company recently received a Department of Education conditional loan commitment that is expected to accelerate its network buildout, further enhancing its growth prospects.
Analysts are divided on EVgo, with seven out of 12 analysts covering the stock giving it a buy or strong buy rating. The remaining analysts rate it as a hold. With the potential for continued growth and a unique business model in the EV charging industry, EVgo presents an intriguing investment opportunity for those looking to capitalize on the evolving landscape of electric vehicles.
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