EVgo (EVGO) Stock Forecast & Price Target

EVgo demonstrates resilience against various market conditions, leveraging increased utilization amidst slower competing charging investments and benefitting from potential growth as electric vehicle (EV) adoption resumes. The company's network throughput for FY24 reached 277 GWh, marking a notable 116% year-over-year increase, and FY24 revenue was reported at $256.8 million, aligning with the company’s guidance and improving outlook for future gross margins. Additionally, the rise in Plugshare-registered users to approximately 6.1 million by 4Q24 and heightened charger utilization in key EV adoption areas bolster investor confidence in EVgo’s growth trajectory and the long-term profitability associated with an expanding EV charging infrastructure.

The negative outlook on EVgo's stock is influenced by shifting investor sentiment towards electric vehicle investments, particularly following the November election, which has created additional pressure on the company's shares. Despite securing a $1.25 billion Department of Energy loan for growth, concerns persist regarding EVgo's ability to access further funding, similar to challenges faced by other green economy firms, thereby heightening uncertainty around its financial stability. Furthermore, the company has initiated FY25 revenue guidance that remains cautious amidst competitive pressures, deployment delays, ongoing supply chain disruptions, and significant operational losses, all of which compound the risks associated with scaling its business effectively.