On Friday, Stifel reaffirmed its positive stance on EVgo Inc. (NASDAQ: NASDAQ:EVGO), maintaining a Buy rating and a price target of $10.00. The firm highlighted the recent completion of EVgo's loan agreement with the U.S. Department of Energy (DOE), which provides the electric vehicle charging network with up to $1.25 billion in low-interest capital.
This funding is set to support the company's aggressive expansion plans over the coming years. The company, currently valued at $1.88 billion, has demonstrated strong momentum with a 203% price return over the past six months, according to InvestingPro data.
EVgo has announced its intention to install up to 7,500 direct current (DC) fast chargers by 2029, a goal that may be surpassed due to anticipated reductions in capital expenditures per charging station. The DOE loan is expected to play a crucial role in facilitating these deployments, allowing EVgo to maintain its current strategy for choosing charger locations—a strategy that has reportedly yielded strong utilization rates compared to its competitors.
With revenue growing 73% year-over-year and a healthy current ratio of 2.19, InvestingPro analysis shows the company maintains strong liquidity to support its expansion plans. Subscribers can access 15 additional key insights about EVgo's financial health and growth prospects.
The closing of the DOE loan is seen as a significant milestone for EVgo, particularly as skepticism had surrounded the finalization of this deal. With the loan now secured, the company is anticipated to speed up its charger installations, which is likely to contribute to both growth and increased profitability in the future.
Stifel's endorsement of EVgo as a leading pure-play electric vehicle charging company remains unchanged. The firm's reiterated Buy rating and $10 price target reflect confidence in EVgo's strategy and the expected positive impact of the DOE loan on the company's expansion and financial performance.
In other recent news, EVgo Inc. has been maintaining a positive trajectory with a series of substantial developments. The electric vehicle charging network secured a significant $1.25 billion loan from the Department of Energy (DOE), a move that Benchmark sees as a reaffirmation of EVgo's strong execution capabilities. This financial support is set to bolster the company's expansion plans, which include the addition of 7,500 new fast-charging stalls to its current network.
In collaboration with General Motors (NYSE:GM), EVgo has achieved a milestone by opening over 2,000 public fast charging stalls across the United States. This accomplishment is a part of their robust nationwide network strategy, which has doubled the companies' fast-charging footprint within just over a year.
The company also reported a record third-quarter revenue of $68 million, indicating a substantial year-over-year increase. This financial success was buoyed by a conditional $1.05 billion loan guarantee from the DOE, which is set to support the addition of 7,500 high-powered charging stalls over the next five years.
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