Investing.com -- Shares of EVgo Inc. (NASDAQ:EVGO) soared by as much as 50% on Wednesday, driven by a bullish upgrade from JPMorgan and news of a $1 billion loan guarantee from the U.S. Department of Energy (DOE).
The stock initially rose 9% following the JPMorgan upgrade and rallied further after reports confirmed the DOE's conditional commitment for the loan.
EVgo, one of the largest public fast-charging networks in the U.S., announced it had secured a conditional commitment for up to $1.05 billion in debt financing from the DOE's Loan Programs Office.
“Public fast charging infrastructure is critical to support the rising rates of EV adoption across the U.S," Badar Khan, CEO at EVgo, told Investing.com.
"With our focus on installing high-power chargers in high-density areas and community locations, this buildout would support our country's transition to all-electric transportation."
"If finalized, this financing would significantly accelerate our expansion of essential fast charging over the next 5 years to serve our nation’s growing number of EV drivers.”
The company plans to deploy approximately 7,500 additional fast-charging stalls across the country by 2030. Over 40% of the new charging stalls will be located in marginalized areas, aligning with the administration's Justice40 initiative to invest in communities impacted by environmental challenges.
The initiative is said to be part of the Biden-Harris administration's efforts to increase EV charging access, especially in underserved communities.
The DOE loan guarantee is expected to accelerate the company's growth, with a particular focus on states such as California, Texas, Florida, and New York.
Earlier today, JPMorgan analysts upgraded EVgo to Overweight from Neutral, citing the company's owner-operator model and strong network utilization in the current EV market.
The investment bank reinstated a price target of $7 for December 2025, highlighting EVgo's ability to scale its operations effectively and projected the company to reach breakeven adjusted EBITDA by the end of 2025.
JPMorgan also placed EVgo on "Positive Catalyst Watch," anticipating further growth from the DOE's loan program, which the analysts believe will significantly accelerate EVgo's network buildout.