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EVgo: This Stock Can Electrify Your Returns

Nov. 01, 2021 7:30 AM ETEVgo, Inc. (EVGO)EVGOW20 Comments
Taron Kwak profile picture
Taron Kwak


  • This article is an analysis and valuation about EVgo, which is the largest pure-play publicly accessible fast charger service provider.
  • Fast chargers are an essential part of accomplishing national wide adoption of electric vehicles. But I believe the current price does not reflect the potentials.
  • The EV industry is composed of high demand from governments, consumers, and manufacturers, stimulating and promising significant growth, especially in the electric charger sector.
  • This article will explain how the current share price is undervalued after going through the DCF method. This valuation will further clarify the asymmetric upside potential with positive yet limited risks.
  • The risk in this investment is a few uncertainties on the operating and financing side because the company is young with a short performance history.

Transportation Secretary Buttigieg Attends Electric Vehicle Event At DOT Headquarters

Drew Angerer/Getty Images News

1. Investment thesis

EVgo (NASDAQ:EVGO) can be a great choice to benefit from the drastic changes in the automotive industry. The main driver of the change is the adoption of electric vehicles. Despite that, the

This article was written by

Taron Kwak profile picture
Hello, I am from South Korea and a CFA charter holder since 2018. I like to invest in a company with attractive valuation and great qualities. Thank you.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of EVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (20)

Estimating 50% market share for EVGO is excessively aggressive considering that the latest figures give them 8% market share. They will have to wrestle it away from TSLA (56% market share) who has much deeper pockets and plans to triple their super charger network and open it to the OEM vehicles. I don’t see a realistic path to 50%, that’s if they manage to stay in business. As you mentioned, the industry is in its infancy, there will be many who won’t make it. Best of luck
Taron Kwak profile picture
@nikolai.v510 Thank you for the comment.
evgo is not the largest pure play charger. Tritium is. It is currently a spac. so if you wish to claim it as currently the biggest pure play publicly traded charger station stock, then ok. in usa, yes evgo is the biggest. but overall, evgo is not the biggest.
Taron Kwak profile picture
@digitalspeed15 Thank you for the comment.
@digitalspeed15 in the US, CHPT is larger than EVGO. And TSLA dwarfs them both, with plans to keep increasing their network. EVGO best hope is internationally.
Bought 3000 shares of EVGO yesterday at $15.90; bought 2500 shares of ChargePoint at $24.36, last week. The EV market place is in its infancy, although the European market for EV is much further along than ours, but at some point gas stations will have to be replaced by charging stations, and there’s no way these charging stations won’t be profitable, Especially with the current political climate for green energy.
Taron Kwak profile picture
@gzabdullah I agree they are inevitable.
Xxfactor profile picture
@Dooyeon Kwak I also agree but there is going to be way more companies then evgo involved?
Taron Kwak profile picture
@Xxfactor Maybe, but I expect the industry will be consolidated into a few larger players eventually. EVgo is more likely to survive because of its advantages as a publicly-traded company and first-mover.
What’s a good 12 month target sp? I’m new to this company.
Taron Kwak profile picture
@TimeKop Hi, what does 12 month target sp mean?
Last, I assumed EVGO's market share would be 50%. Then, the expected number of fast chargers to be operated by the company would be between 84,925 and 38,865, which means growing at 47.5% to 59.4% annually.

Something not right with above statement from article.
@JP295 Tritium is the overall largest pure play charger for evs. it is currently a spac. DCRN is the ticker. evgo is the biggest in usa as a pure play, but not the biggest overall.
Now let's see what the passing of the Infrastructure Bill does for EVGO.
I hope you are right!
OffTheChartTrading profile picture
Our favorite charging play long term!
Thank you for a good article. I am long on evgo.
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