EVgo is behind a network of public fast-charging direct current (DC) stations powered by renewable energy and designed for electric vehicles (EVs). Founded in 2010, the company has an early-mover advantage. It strategically positions its charging stations at grocery stores like Kroger and WinCo, hotels, gas stations, individual property owners and more.
EVgo has several high-profile partnerships, including with the likes of automakers General Motors and Nissan North America. Another EVgo partner is Amazon through which EV drivers can find and pay for charging via robot Alexa. EVgo went public in 2021 through a merger with Climate Change Crisis Real Impact.
How do we estimate EVGO will do in 2023?
The EVGO stock forecast for 2023 is positive with a dose of caution. Wall Street analysts have a median price target of $9 on the stock for 2023. The highest estimate is $21 while the low is $6.20. Most analysts advise investors to hold the stock while some recommend buying it.
In 2023, EVgo announced a maintenance program to replace, upgrade or retire hundreds of its charging stations. One tailwind for EVGO stock is the company’s new partnership with Amazon. EVgo also signed a new deal with Lowe’s in which the home improvement retailer will host EV charging stations.
In Q3 2022, EVgo grew its revenue 70% vs. the year-ago period. In the first nine months of 2022, it had approximately $300 million in cash and restricted cash on its balance sheet, down from $521 million in the year-ago period. The company was not profitable in its latest quarterly results.
How do we estimate EVGO will do in 2024?
The EVGO stock forecast for 2024 could be more of what investors experienced in 2023 — cautious optimism. All of the stars are aligning for the EV market, including government subsidies, which should strengthen demand for charging stations. EVGO stock is likely to have bullish momentum on its side in 2024.
Large institutional investors including the likes of Vanguard and Blackrock are shareholders of EVGO. Any increase in institutional ownership of EVGO stock would be bullish, as funds run by these asset managers are often found in the retirement plans of individual inventors and satisfy ESG standards.
Without profitability, EVGO stock is still considered risky and could continue to display volatility in the market. The economy and consumer will be key to watch as both are instrumental in demand for EVs and related stocks. Fortunately, by 2024, any signs of a U.S. recession are widely expected to be in the rear-view mirror. This could be a tailwind for EVGO stock.
How do we estimate EVGO will do in 2025?
The EVGO stock forecast for 2025 could be bullish, as expectations are for the company to achieve profitability this year. If this proves out, skittish investors could be much more interested in owning the stock. Without profits, EVgo is a riskier investment but it is not alone. Even though EV as a market is growing by leaps and bounds, profits continue to elude EV charging station companies.
General Motors, one of EVgo’s partners, expects its EV division to be profitable by 2025. Starting in 2025, GM predicts it will sell 1 million EVs each year across 30 EV models. This bodes well for EVgo, as the more GM electric vehicles that are on the road, the more its charging stations will be in demand. S
As long as EVgo continues to grow its revenue, it is on the right path. The company grew its revenue at a pace of approximately 50% in both 2021 and seemingly in 2022, with revenue projections for $48 million-$55 million. At this pace, EVgo’s share of the U.S. EV charging will continue to grow.
How do we estimate EVGO will do in 2030?
The EVGO stock forecast for 2030 is positive. By 2030, more than 50% of all passenger vehicles sold in the U.S. are expected to be EVs. A catalyst for this is President Joe Biden’s climate spending bill, which directs a tax credit of $7,500 at the point of sale to consumers. As EVgo continues to expand its network of EV charging stations, it will be strategically positioned to benefit from this trend.
According to a PwC report, the EV charging market must expand to meet the demand of the estimated 27 million EVs that are expected to be owned by 2030. EVGO is in the process of upgrading its infrastructure so that it will be prepared for this surge in demand. Assuming that EVGo continues to ink partnership deals with major automakers and retailers, it is unlikely that it will lose its lead in the U.S. EV charging market.
EVgo competes with the likes of Electrify America, blink and ChargePoint.
The company was founded in 2010 as a subsidiary of NRG Energy. It was sold in 2016 and became a publicly traded company in 2021 by combining with shell company Climate Change Crisis Real Impact.
EVgo can be considered a consumer stock. If consumers are not buying EVs, demand for EVgo’s charging stations would diminish. But it is also a technology play, and when the economy is slowing, tech stocks tend to suffer as investors flock to safer stocks.
As of year-end 2022, the company had 2,625 stalls either operating or under construction. The company also rolled out a plan to upgrade, replace or retire some of its older infrastructure.