RBC doubles EVgo price target after Department of Energy loan

RBC Capital analyst Christopher Dendrinos doubled the firm’s price target on EVgo to $8 from $4 and keeps an Outperform rating on the shares. The firm believes the Department of Energy loan provides a low cost financing mechanism and removes the risk of equity dilution, while allowing investors to underwrite higher growth assumptions. While exact timing of financial close and the pace at which EVgo can accelerate are still unknown, the $1.05B guarantee provides the flexibility to scale with compounding battery electric vehicle vehicles in operation growth and supports a “robust long-term growth trajectory,” the analyst tells investors in a research note. RBC now has greater visibility on timing of the company’s accelerated build out.