EVgo Initiated at Hold. Needham Analysts See It Becoming a ‘Formidable Player’

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Electric-vehicle charging stations, hosted by EVgo, at Union Station in Washington.

Jim Watson/AFP via Getty Images

Shares of

EVgo

were initiated with a Hold rating at Needham, with analysts saying the electric-vehicle charging company could become a “formidable player” in the space.

Needham noted EVgo’s strong partnerships and said the company owns its stations, all in high-traffic metropolitan areas.

“These factors, combined with the company’s disciplined expansion strategy, provide EVgo with industry-leading asset utilization and strong operating leverage,” the analysts wrote in a note Tuesday.

“We believe the company’s strategy, astute management team, strong liquidity position and solid fundamentals will make it a formidable player in the space. “

Needham, however, said Wall Street expectations on the stock were too aggressive and it would “remain on the sidelines until we see convergence between our estimates and consensus and/or a better entry point.” Needham didn’t issue a price target on EVgo shares.

EVgo was falling 2.47% Tuesday to $9.80. The stock fell more than 4% in Monday’s session. It has declined 6% this year.

Analysts surveyed by FactSet rate the stock at Overweight with an average price target of $18.38.

Earlier this month, EVgo was initiated by J.P. Morgan at Overweight and with a $20 price target, with the analysts seeing the company “driving outsized revenue growth on rapidly increasing fleet adoption and higher utilization.”

Write to Joe Woelfel at [email protected]

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