Sunday, May 22, 2022 4:17:01 PM
EVgo has impressive partnerships and strong competitive advantages
5/22/2022 · By Larry Ramer, InvestorPlace Contributor
https://investorplace.com/2022/05/buy-evgo-stock-before-it-becomes-the-tesla-of-ev-charging-stations/
Source: Sundry Photography / Shutterstock.com
Key Points
- EVgo (EVGO) continues to make partnerships that will increase its reach in the growing EV charger field.
- Analysts are warming up to the company and its valuation.
- The market for charging will likely be worth tens of billions of dollars soon.
EVgo (NASDAQ:EVGO) stock is well-positioned to rally due to the company’s impressive partnerships and its leadership in two key areas.
Meanwhile, an analyst at Credit Suisse was very bullish on EVGO stock in the wake of the company’s recently reported Q1 results, and the shares’ valuation is quite attractive after their recent, sharp decline.
EVgo’s competitive advantages in the EV charging sector space leave it poised to become the Tesla (NASDAQ:TSLA) of the space.
Impressive Alliances and Competitive Advantages
As I’ve noted in the past, EVgo has made partnership deals with multiple huge automakers and a number of sizeable retailers. Most recently, the company agreed to deploy its charging stations at 50 branches of JPMorgan’s (NYSE:JPM) Chase Bank.
And importantly, there was an indication that EVgo can meaningfully capitalize on its partnerships. Specifically, “a new joint marketing program” launched in Q1 by EVgo and Uber (NYSE:UBER) targeting Uber’s drivers has been significantly accelerating. In April, the total usage of EVgo’s chargers by the ride-sharing company’s drivers jumped 50%, compared with the average level in Q1, EVgo CEO Cathy Zoi explained.
Like Tesla, EVgo is ahead of its competitors in important areas. In EVgo’s case, the company has more fast-charging stations than any other public charging network in the U.S. EVgo notes that “More than 130 million people in the US live within a 10 mile drive of an EVgo fast charger.”
Tesla does have more fast-charging stations in the U.S. than EVgo, but only Tesla owners can use its stations. That makes EVgo the top fast-charging network for Americans who own EVs made by firms other than Tesla.
Additionally, all of its chargers use 100% renewable energy, an important selling point with most EV owners that none of the firm’s sizeable competitors (other than Tesla) seems to be able to match at this time.
Credit Suisse Upgraded EVGO Stock
On May 12, in the wake of EVgo’s Q1 results, Credit Suisse analyst Maheep Mandloi upgraded the company’s shares to “outperform” from “neutral.” Among the reasons for the upgrade are the company’s reiterated full-year guidance, its alliances, and its improved profitability.
Credit Suisse also noted that EVgo’s guidance did not take into account “the $615m being made available later this year to developers such as EVgo as part of the National Electric Vehicle Infrastructure Program.” That initiative is expected to be launched at the end of this year or in early 2023.
The bank added that the “valuation looks attractive.” I agree with that sentiment. After their recent pullback, the shares have a market capitalization of $2.35 billion. That market capitalization radically undervalues EVgo, because it is very well-positioned to capture a very large share of a market that’s likely to be worth many tens of billions of dollars annually.
Given EVgo’s strong competitive advantages and its very favorable valuation, I recommend that growth investors buy the company’s shares.
On the date of publication, Larry Ramer was long EVGO stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.
Recent EVGO News
- EVgo Appoints Paul Dobson Chief Financial Officer • Business Wire • 09/19/2024 11:00:00 AM
- EVgo and GM Take Charging to the Next Level with New Flagship Destinations Set to Optimize the Charging Experience • Business Wire • 09/12/2024 12:00:00 PM
- EVgo CEO to Host Public Virtual Town Hall on October 2 at 8:30AM ET • Business Wire • 09/09/2024 08:05:00 PM
- EVgo Announces Major Network Enhancements Across Nationwide Fast Charging Network • Business Wire • 08/14/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/13/2024 11:27:04 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/12/2024 08:03:09 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/01/2024 08:15:35 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/01/2024 11:15:22 AM
- EVgo Inc. Reports Record Second Quarter 2024 Results • Business Wire • 08/01/2024 11:00:00 AM
- EVgo Expands Leadership Team with Seasoned Industry Talent • Business Wire • 07/25/2024 11:00:00 AM
- EVgo to Report Second Quarter 2024 Results on August 1, 2024 • Business Wire • 07/24/2024 09:51:00 PM
- EVgo and Regency Centers Open Newest Fast Charging Station in Longstanding Partnership, Expanding Footprint to More Than 120 Stalls Across U.S. • Business Wire • 06/26/2024 11:00:00 AM
- EVgo Names Keith Hutchison as Company’s First Chief People Officer • Business Wire • 06/20/2024 11:00:00 AM
- EVgo Recognizes Massive Rideshare Growth as Commercial Throughput More Than Tripled Year over Year in Q1 • Business Wire • 06/13/2024 11:00:00 AM
- Toyota Announces First Communities to Receive DC Fast Chargers Through 'Empact' Vision • PR Newswire (US) • 05/29/2024 11:00:00 AM
- EVgo Celebrates More Than 1 Million Customer Accounts Across the U.S. as EV Adoption Continues to Grow • Business Wire • 05/21/2024 11:00:00 AM
- Motiv Names Scott Griffith as Chief Executive Officer and Board Member • GlobeNewswire Inc. • 05/16/2024 12:00:00 PM
- EVgo Doubles Down on Commitment to Begin NACS Deployments in 2024 • Business Wire • 05/14/2024 11:00:00 AM
- EVgo Inc. Reports Record First Quarter 2024 Results • Business Wire • 05/07/2024 11:05:00 AM
- EVgo Expansion in Los Angeles Recognized with 1st Place Leadership Award by Largest Municipal Utility in the Nation • Business Wire • 05/01/2024 11:00:00 AM
- EVgo to Report First Quarter 2024 Results on May 7, 2024 • Business Wire • 04/24/2024 12:04:00 PM
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- EVgo Welcomes Scott Griffith to Board of Directors • Business Wire • 04/03/2024 11:30:00 PM
- EVgo to Host Financial Modeling Webinar on April 4, 2024 • Business Wire • 04/01/2024 09:00:00 PM
- SLB Capital Advisors Advises on Sale Leasebacks For Leading EV Fast Charging Solutions Provider EVgo • PR Newswire (US) • 03/26/2024 03:30:00 PM
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