Buy Evgo stock for a 93% return in 12 months: Stifel analyst

Evgo Inc (NASDAQ: EVGO) ended 20% down today after announcing plans of raising capital to expand its charging network.

On Wednesday, the California-based company said it will sell new stock to raise about $125 million in total.

The subsequent sell-off, though, could be an opportunity to build a position in Evgo stock that’s now down about 40% versus its recent high, as per Stephen Gengaro – a Senior Analyst at Stifel.

Evgo’s large, growing fast charging network positions it well to capitalise on this trend [EV adoption], supported by NEVI funding and support from partners.

He remains constructive on Evgo Inc even though it recently reported a Q1 loss and revenue that came in shy of Street estimates.

Gengaro expects Evgo to generate $132 million in revenue this year – a number he expects will grow by several folds to $428 million in 2025.

Continued adoption of electric vehicles particularly on the back of Inflation Reduction Act could see this EV stock hit $9.0 over the next twelve months, he said in his research note.   

We expect robust U.S. EV sales growth over the next decade fuelled by Government mandates, proliferation of new models from both legacy automakers and EV OEMs, and consumer demand.

Evgo currently has more than 850 EV chargers across thirty states – a network of DC chargers that’s second in size only to Tesla Inc.