EVgo Stock Forecast is $11

EVgo Stock Forecast is $11

EVgo Stock Forecast is $11

September 5th

Latest EVGO Price

EVgo Stock Forecast: Performance Chart

Stock Name 5 days 1 Month YTD
EVgo Inc -1.34% -5.03% -16.3%

EVgo Stock Forecast Update: Will New Partnerships Make EVgo Profitable?

  • EVgo announces strategic collaborations in form of EVgo eXtend- In July 2022, EVgo announced EVgo eXtend project under which it will deploy 2000 charging stalls at Pilot and Flying J locations in collaboration with General Motors and Pilot company. EVgo under this will install, operate and maintain the 350KW charging stalls for Pilot company at more than 500 locations. In recent results, EVgo reported 2397 stalls in operation with 170 new stalls in the recent quarter, this partnership will further extend this network and will be helpful for long drivers to be confident about the presence of EV chargers.
  • But underlying problems with EVgo remain the same- All these partnerships are okay, but there are few visible problems with the EV business and its companies. First of all, these companies are unprofitable to date with no possibility of turning into one anytime soon. For instance, EVgo reported EBITDA of -29.48 million on revenue of 9.08 million which is not a good sign. Secondly, these companies are trading at too expensive valuations. For instance, EVgo is trading at Price to Sales ratio of 27 which is quite high for this bear market. Thirdly, there is no moat in the EV business, and the products of EVgo, and ChargePoint is the same, hence there is the commercialization of EV charger and not a particular brand of charger. The companies like General Motors are tying up with more than a dozen EV charging companies and not focusing on a single company. As demand will go up, there will be a cost war and that will further reduce the profitability.

There is no distinguishing factor between companies in the EV charging segment. Although there is a push from the government the underlying problems with the sector remain intact.

EVgo is doing its bit in form of making possible partnerships with General Motors and Pilot and Flying J, but investors should avoid this penny stock till it becomes profitable.

Also read: Rivian Stock Forecast

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EVgo Stock Forecast: 12-Month Forecast

Overall $11
CNN Money $11
Nasdaq $10
Investment.com $11

Future Outlook for EVgo Inc

  • If we look at valuations, although EV charging companies are unprofitable, they are still trading at very high valuations. EVgo is trading at price to sales ratio (P/S) of 185 whereas other companies like ChargePoint is trading at price to sales ratio of only 45 and Blink Charging stock is trading at P/S ratio of 110. Therefore, EVgo is not a buy from a valuation perspective.
  • There is a mix of positive and negative news for EVgo with the infrastructure bill in the pipeline and recent partnership, but still, it could not attract analysts and they have termed it a euphoria state citing stiff completion.
  • Firstly, it is to be acknowledged that EVgo is taking the right steps for future growth and valuations will be justified only with a growth trajectory. With Government impetus and the right strategy, EVgo can leap forward in the future and stock can give much-expected returns. 

-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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EVgo Stock Forecast is $11

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