EVgo Shares Surge After UBS Upgrade Highlights DOE Loan and Positive Growth Projection

EVgo’s stock experienced a 5.1% increase in pre-market trading on Thursday, following an upgrade from UBS. The brokerage elevated its rating for EVgo from “neutral” to “buy,” citing growing confidence in the electric vehicle charging company’s growth potential.

This upgrade came on the heels of a significant announcement from the Department of Energy last week, which revealed that EVgo had secured a conditional loan commitment of $1.05 billion. This funding is anticipated to expedite the rollout of EVgo’s charging stations beyond 2025, surpassing the company’s current deployment pace.

UBS analysts highlighted that the Department of Energy loan would enable EVgo to boost its annual stall deployments from the existing rate of 800-900 units to over 1,500 units per year. This expected growth, along with projections of achieving adjusted EBITDA breakeven by the latter half of 2025, solidified the foundation for UBS’s upgraded outlook.

Moreover, UBS raised its price target for EVgo shares from $4 to $8.50, indicating a higher valuation as the company enhances its financial visibility.