Buy Evgo stock for a 93% return in 12 months: Stifel analyst

Evgo Inc (NASDAQ: EVGO) ended 20% down today after announcing plans of raising capital to expand its charging network.

Evgo stock down on plans of a share sale

On Wednesday, the California-based company said it will sell new stock to raise about $125 million in total.

The subsequent sell-off, though, could be an opportunity to build a position in Evgo stock that’s now down about 40% versus its recent high, as per Stephen Gengaro – a Senior Analyst at Stifel.

He remains constructive on Evgo Inc even though it recently reported a Q1 loss and revenue that came in shy of Street estimates.

Evgo stock should be worth $9.0

Gengaro expects Evgo to generate $132 million in revenue this year – a number he expects will grow by several folds to $428 million in 2025.

Continued adoption of electric vehicles particularly on the back of Inflation Reduction Act could see this EV stock hit $9.0 over the next twelve months, he said in his research note.   

Evgo currently has more than 850 EV chargers across thirty states – a network of DC chargers that’s second in size only to Tesla Inc.