EVgo (EVGO) Stock Forecast & Price Target

EVgo demonstrates a resilient business model by benefiting from increased utilization as competition in the EV charging market slows and adoption uncertainty persists, positioning it favorably regardless of market conditions. The company's registered users reached approximately 6.1 million by the end of Q4 2024, reflecting robust user growth that supports its expanding customer base. Additionally, with a notable 116% year-over-year increase in network throughput to 277 GWh during FY24 and projected improvements in gross margins, EVgo's financial metrics indicate a positive outlook bolstered by higher charger utilization and expanding network reliability.

The negative outlook on EVgo's stock stems from a combination of deteriorating investor sentiment towards EV-related investments, particularly following the November election, and concerns about the company's ability to access additional funding from its $1.25 billion DOE loan, despite an initial drawdown of $75 million. Furthermore, EVgo's FY25 revenue guidance of $340 million to $380 million coincides with a significant EBITDA loss of $32.5 million, indicating operational challenges amidst heavy competition, potential delays in charger deployment, and ongoing supply chain disruptions that may limit the growth of Electric Vehicles. Additionally, the persistence of regulatory uncertainties and the shift towards private, slower charging solutions contribute further to a challenging environment for EVgo's growth prospects.