EVgo: Struggles To Revitalize Its Profitability Despite Growing Charging Infrastructure Revenue

Summary

• EVgo shows impressive revenue growth and network expansion, but profitability remains elusive. The company faces challenges in charging infrastructure costs and stiff competition from established players like Tesla and ChargePoint.
• The EV charging market's growth is tied to overall EV adoption, which is currently experiencing a slowdown. EVgo's future success depends on overcoming infrastructure installation costs and navigating economic uncertainties.
• Despite strong sales, EVgo's valuation remains high compared to peers. With a target price of $4.2-$4.4 per share, reflecting current levels, the stock is rated as a Hold pending future.

sanfel

Introduction

EVgo (NASDAQ:EVGO) is one of the leading companies in the distribution, operation and building infrastructure for electric vehicle charging solutions in the US. The company has over 1,000 fast charging points in over 35 states. EVgo

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.