EVgo (EVGO – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Gabriel Daoud from TD Cowen maintained a Buy rating on the stock and has a $5.00 price target.
Gabriel Daoud has given his Buy rating due to a combination of factors, including EVgo’s strategic financial maneuvers and growth potential. The company is poised to benefit significantly from the Department of Energy (DOE) loan, which is expected to support its ambitious expansion plans, aiming to reach approximately 11,000 stalls by 2029. This expansion is projected to drive substantial revenue growth, with expectations of reaching $1 billion in charging network revenue and a gross profit of $545 million.
Moreover, EVgo is actively working on optimizing its capital expenditures, with plans to reduce costs through innovations like prefabricated skids and next-generation chargers. These efforts are anticipated to result in a 30% improvement in capital expenditure by the second half of 2026. Despite a slight revenue miss in the recent quarter, the company’s average utilization rates are improving, aligning with its long-term targets, which further supports the positive outlook. These strategic initiatives and financial projections underpin Daoud’s confidence in the stock’s potential, justifying the Buy rating.
In another report released on February 18, J.P. Morgan also maintained a Buy rating on the stock with a $6.00 price target.