Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 7 Oct, 25 | EVGO | Buy | USD 4.88 | USD 5.12 | USD 5.37 | 1 day | Closed |
4.92%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
EVgo, Inc. owns and operates a direct current fast charging network for electric vehicles (EVs) in the United States. The company offers electricity directly to drivers, who access its publicly available networked chargers; original equipment manufacturer charging and related services; fleet and rideshare public charging services; and charging as a service and fleet dedicated charging services. It also provides ancillary services, such as customization of digital applications, charging data integration, loyalty programs, access to chargers behind parking lot or garage pay gates, microtargeted advertising, and charging reservations; and hardware, design, and construction services for charging sites, as well as ongoing operations, maintenance, and networking and software integration solutions through eXtend. In addition, it offers PlugShare such as data, research, and advertising services and equipment procurement and operational services. EVgo, Inc. was incorporated in 2010 and is headquartered in Los Angeles, California.EVgo, Inc. operates as a subsidiary of LS Power Development, LLC.
EBITDA Improvement: Adjusted EBITDA losses reduced by 76%, improving from (USD 8.0 million) to (USD 1.9 million), reflecting substantial operational efficiency gains
Revenue Growth: Total revenue increased 47% YoY, from USD 66.6 million in Q2 FY2024 to USD 98.0 million in Q2 FY2025
Capital Offset Decline: Total capital offsets fell 13% YoY, from USD 10.4 million to USD 9.1 million, suggesting reduced external funding assistance for infrastructure builds
Net Loss Stagnation: Net loss widened marginally to USD 29.8 million, compared to USD 29.6 million in Q2 FY2024, showing limited progress toward profitability
EVgo’s growth strategy remains highly capital-intensive and dependent on continued access to external financing, making the company vulnerable to interest rate increases, funding constraints, or delays in achieving sustained profitability
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 4.88 | 4.0 | 5.12 | 5.37 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strategic Financing Milestone: In July 2025, EVgo Inc. achieved a significant financial milestone by securing a first-of-its-kind commercial bank loan facility totaling USD 225 million, with an additional USD 75 million in incremental availability, allowing for potential expansion up to USD 300 million. The five-year, oversubscribed facility, backed by five participating lenders, is intended to accelerate EVgo’s nationwide rollout of over 1,500 new fast-charging stalls. This financing underscores lender confidence in EVgo’s business model and growth trajectory, while providing essential capital to strengthen its infrastructure expansion strategy.
Continued Revenue and Throughput Growth: EVgo delivered another record quarter in Q2 FY2025, reporting USD 98.0 million in revenue, marking a 47% year-over-year increase compared to USD 66.6 million in Q2 FY2024. The company’s charging network revenue reached a record USD 51.8 million, up 46% year-over-year, representing the 14th consecutive quarter of double-digit growth. Network throughput increased 35% year-over-year to 88 GWh, driven by higher utilization rates and an expanding customer base, demonstrating the growing adoption of EVgo’s public charging infrastructure.
Operational Expansion and Customer Growth: Operationally, EVgo ended the quarter with 4,350 charging stalls, reflecting a 27% increase from 3,420 stalls a year earlier. The company added over 240 new stalls while retiring 100 legacy stalls as part of its EVgo ReNew™ modernization initiative. Customer engagement remained robust, with 122,000 new accounts added during the quarter, bringing the total to 1.5 million active accounts. Furthermore, the company’s Autocharge+ service accounted for 28% of all charging sessions, reinforcing strong customer adoption of seamless charging solutions.
Improving Efficiency and Profitability Metrics: EVgo demonstrated notable progress in profitability and operational efficiency. Gross profit more than doubled to USD 13.9 million from USD 6.4 million, and gross margin improved by 460 basis points to 14.2%. Adjusted Gross Profit reached USD 28.4 million, up 61% year-over-year, while Adjusted EBITDA losses narrowed significantly to (USD 1.9) million, representing a 76% improvement from (USD 8.0) million in Q2 FY2024. These improvements reflect enhanced cost controls, higher network utilization, and operational scale efficiencies, bringing the company closer to its target of achieving Adjusted EBITDA breakeven by year-end.
Strengthened Cash Flow and Capital Discipline: Cash flow performance improved markedly, with net cash provided by operating activities rising 86% year-over-year to USD 14.1 million, compared to USD 7.6 million in Q2 FY2024. Capital expenditures totaled USD 26.2 million, slightly up by 8%, but capital offsets from OEM partnerships and capital-build funding declined 13%, resulting in net capital expenditures of USD 17.1 million, up from USD 13.8 million. While the rise in net capex reflects accelerated infrastructure deployment, the lower offsets indicate a partial reduction in external funding support.
Market Position and Strategic Outlook: EVgo continues to fortify its leadership position within the U.S. EV charging sector through sustained infrastructure growth, customer expansion, and technology adoption. The introduction of native NACS (J3400) connectors, currently in pilot phase, positions EVgo competitively as industry standards evolve. The company’s PlugShare platform also reached 6.9 million users with 9.7 million total check-ins, extending its digital ecosystem reach. As EVgo progresses through 2025, management remains focused on enhancing shareholder value, improving profitability, and expanding its high-power charging network to support the increasing pace of EV adoption nationwide.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on EVgo Inc. (Nasdaq: EVGO) at the closing market price of USD 4.88, as on Sep 06, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Specialty Retail
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| EVGO Evgo Inc |
0.03 1.00% | 3.03 | - | - | 3.66 | 90.14 | 0.41 | -0.7891 |
| ORLY O’Reilly Automotive Inc |
-1.12 1.21% | 91.73 | 25.08 | 25.45 | 4.02 | 210.18 | 4.50 | 19.67 |
| ANCTF Alimentation Couchen Tard Inc A |
1.03 1.95% | 53.77 | 21.36 | 19.46 | 0.76 | 3.91 | 0.92 | 11.48 |
| AZO AutoZone Inc |
23.27 0.69% | 3416.62 | 20.58 | 19.49 | 2.87 | 13.38 | 3.52 | 14.93 |
| TSCO Tractor Supply Company |
-1.24 2.32% | 52.25 | 27.47 | 23.81 | 1.82 | 12.29 | 2.13 | 16.60 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 06,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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