EVgo Shares Rise After UBS Upgrade Citing DOE Loan Boosts Growth Outlook By Investing.com

Investing.com — Shares of EVgo (NASDAQ: ) rose 5.1% in pre-market trading on Thursday, supported by an update from UBS.

The brokerage raised its rating on EVgo to “buy” from “neutral,” signaling increased confidence in the electric vehicle charging company’s growth trajectory.

The UBS upgrade follows a major Department of Energy announcement last week in which EVgo secured a $1.05 billion conditional loan commitment.

This funding is expected to accelerate the deployment of EVgo’s charging stations beyond 2025, exceeding the company’s current rate of deployment.

UBS analysts noted that the DOE loan would allow EVgo to increase its annual lockout deployments from its current pace of 800-900 units to more than 1,500 per year.

This projected growth, along with expectations to reach the adjusted EBITDA breakeven point by the second half of 2025, provided a solid basis for UBS’s improved outlook.

Additionally, UBS raised its price target on EVgo shares from $4 to $8.50, reflecting a higher valuation as the company gains financial visibility.