EVgo's Q1 Performance Sparks Optimism, Analyst Upgrades Stock
Portfolio Pulse from Shivani Kumaresan
Cantor Fitzgerald analyst Andres Sheppard upgraded EVgo Inc (NASDAQ:EVGO) from Neutral to Overweight, adjusting the price target from $5 to $4, following a strong Q1 FY24 performance. EVGO reported a 118.2% year-on-year sales increase to $55.16 million, surpassing estimates, with an EPS of $(0.09) beating expectations. The company announced CFO Olga Shevorenkova's departure, a significant increase in charger utilization and network throughput, and an increase in Plugshare-registered users to over 5 million. Management reaffirmed its FY24 revenue guidance and the goal to achieve breakeven Adj. EBITDA by 2025. EVGO's stock has risen 9.7% to $1.92, reflecting optimism from these developments.
May 09, 2024 | 6:41 pm
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EVgo Inc's strong Q1 FY24 performance, including a significant sales increase and EPS beating estimates, led to an analyst upgrade from Neutral to Overweight with a revised price target. The company also reported substantial growth in charger utilization, network throughput, and user base, alongside the announcement of the CFO's departure.
The upgrade by Cantor Fitzgerald reflects a positive outlook on EVGO's financial health and growth trajectory, particularly noting the significant year-on-year sales increase and EPS beat. The departure of the CFO could introduce some uncertainty, but the reaffirmed revenue guidance and target to achieve breakeven Adj. EBITDA by 2025, alongside the stock's performance post-announcement, suggest a bullish short-term impact. The increase in charger utilization and network throughput indicates a growing demand for EVGO's services, further supporting the stock's potential upside.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100