J.P. Morgan reaffirms an “Overweight” rating for EVgo Inc (NASDAQ:EVGO), setting a price target of $5.00 based on strong revenue performance and strategic positioning in the EV charging industry.
EVgo’s eXtend business segment exceeds expectations, contributing significantly to the company’s financial success and stability, supported by a Department of Energy (DOE) loan.
The company’s growth is further bolstered by plans for non-dilutive funding and small-scale acquisitions, with manageable tariff-related costs estimated at $4–5 million in 2025.
EVgo Inc (NASDAQ:EVGO) is a prominent player in the electric vehicle (EV) charging industry, focusing on fast charging solutions. The company is strategically positioned to capitalize on the growing demand for EV infrastructure. As of May 8, 2025, J.P. Morgan maintained an “Overweight” rating for EVGO, reflecting a positive outlook on the stock, which was priced at $3.83.
J.P. Morgan analyst Bill Peterson set a price target of $5.00 for EVGO, highlighting the company’s strong revenue performance, particularly from its eXtend business. This segment has exceeded expectations, contributing to the company’s robust financial results. EVgo’s reaffirmation of its financial and stall deployment targets has eased investor concerns about the stability of its Department of Energy (DOE) loan.
The DOE loan, which experienced a second drawdown in April, is scheduled for quarterly disbursements over the next five years. This financial backing supports EVgo’s growth plans, as the company aims to increase its market share in fast charging. Competitors face challenges from uncertain EV policies and reduced spending by site hosts, giving EVgo a competitive edge.
EVgo’s management is confident in the company’s ability to secure additional non-dilutive funding and explore small-scale acquisitions to further bolster growth. Tariff-related costs are expected to be manageable, estimated at around $4–5 million in 2025. Much of the affected equipment has already been accounted for, minimizing potential financial impact.
The stock has shown resilience, with a recent increase of 4.36%, translating to a rise of $0.16. It has fluctuated between $3.66 and $3.96 during the day. Over the past year, EVGO’s stock has reached a high of $9.07 and a low of $1.78. The company’s market capitalization is approximately $1.17 billion, with a trading volume of 6,003,165 shares.
