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EVgo: Partnerships to Drive Growth
Stock Analysis & Ideas

EVgo: Partnerships to Drive Growth

EVgo (Nasdaq:EVGO) is an electric vehicle (EV) charging station company. It is one of the largest electric vehicle charging networks in the United States, with over 800 sites in 68 metro regions spanning 35 states.

The company went public on July 1 through a SPAC merger and the shares began trading on the NASDAQ on July 2.

With a market capitalization of $798.7 million, EVgo’s stock has lost around 23% of its value since its IPO.

Partnerships – Key Growth Driver

In order to reach new heights in the fast charging deployment area, EVgo is developing new collaborations.

In response to the growing popularity of electric vehicles, the company teamed up with General Motors (NYSE:GM) last month to develop its rapid charging infrastructure framework (EVs). By 2025, the corporations want to have installed 3,250 charging stations around the country, expanding their geographic coverage from 40 to 52 urban areas.

In addition, EVgo teamed with Uber Technologies (NYSE:UBER), America’s leading ridesharing firm. EVgo will offer discounts to Uber drivers as part of the arrangement, thus luring them to use EVgo’s charging stations.

These alliances should help the corporation retain its dominance in the EV charging industry while also driving expansion.

Other Catalysts

Another plus is the newly passed infrastructure law, which includes $7.5 billion in funding for the EV charging station network. EVgo appears to have struck it rich in this case.

Fortunately, the state of California chose EVgo for $1.7 million in proposed grants to construct new high-powered direct current fast chargers (DCFC) to help the state fulfill its transportation electrification goals.

Furthermore, the ongoing global movement for climate restoration, as well as the growing demand for alternative energy, should both contribute to greater EV adoption, resulting in a higher need for EVgo chargers.

TipRanks’ Stock Investors tool also reveals that investors who hold portfolios on TipRanks are increasing their exposure to EVgo stock. In the last 30 days, 20.1% of these investors have raised their exposure to EVgo stock.

The measure indicates that investors are becoming more interested in the business.

Wall Street’s Take

Turning to Wall Street, the stock has a Hold consensus rating, based on 1 Buy, 3 Holds and 1 Sell rating assigned in the past three months. As for the price target, the average EVGO price target of $14.80 implies 27.4% upside potential to current levels.

Disclosure: At the time of publication, Shalu Saraf did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates  Read full disclaimer >

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