Key Takeaways
- EVgo received a conditional $1.05 billion loan guarantee from the Department of Energy to install public EV charging stations.
- The company expects to put 7,500 fast-charging stalls around the U.S. by 2030.
- JPMorgan upgraded EVgo’s stock, saying it will outperform its rivals’ shares in the next few years.
EVgo (EVGO) shares soared 50% Thursday after the electric vehicle (EV) charging station provider received a $1.05 billion conditional government loan guarantee to install public EV chargers.
The company said the debt financing from the Department of Energy “will facilitate the build out of approximately 7,500 additional fast charging stalls across the U.S.” EVgo expects the work to be completed by 2030.
CEO Says Investment Would ‘Meaningfully Accelerate’ Expansion
Chief Executive Officer (CEO) Badar Khan called it a “historic investment” that would “meaningfully accelerate our network expansion to provide public charging to EV drivers across the United States.”
Also Thursday, JPMorgan upgraded EVgo’s stock, arguing that it would exceed industry peers’ performance over the next few years. The bank raised its rating to “outperform” from “neutral,” and reinstated its $7 price target.
The analysts explained that “EVgo’s fast charging owner-operator model has been scaling well with higher utilization and charge rates in the current muted EV environment.”
EVgo shares added half of their value to $5.89 early Thursday afternoon, trading at their highest level since the spring of last year.
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