EVgo price target lowered to $7 from $8 at JPMorgan

JPMorgan analyst Bill Peterson lowered the firm’s price target on EVgo (EVGO) to $7 from $8 and keeps an Overweight rating on the shares. While it is not uncommon for sponsors to sell shares, the news of LS Power Equity Partners selling 23M shares of EVgo was received with a sharp negative knee-jerk reaction given the deep discount it was priced at, the analyst tells investors in a research note. The firm says investor concerns around EVgo predated the secondary offering given policy uncertainty in the U.S. JPMorgan does not think there is significant risk to EVgo’s Department of Energy loan being clawed back under President Trump per its discussions with the company and channel checks across the industry. JPMorgan continues to see “strong near-term execution” and the first loan draw as near-term catalysts to “appease investor fears.”