EVgo Stock Forecast: EVgo continues falling, Outlook remains Bleak.

EVgo Stock Forecast: EVgo continues falling, Outlook remains Bleak.
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EVgo Stock Forecast, January 21th: In the next trading session, Shares of EVgo Inc are expected to trade between $ 7.60 and $ 8.55.

Current Outlook is Negative (Positive: 00%, Negative: 60%).

2 analysts

EVgo Latest Price.: EVgo closed 1.68% lower at $ 8.20 in the previous trading session.

Metric
Value
Trend
Share Volume
2.24 M
NA
Average Share Volume
10.39 M
NA
Forward PE (1 Year)
-6.52
NA
e1 2

Also read: Best EV stocks to buy in 2022

EVgo Stock Forecast: Performance Chart

Stock Name
1 day
5 days
1 Month
1 Year
-1.68%
-11.73%
-20.39%
-38.53%

Also read: Rivian Stock Forecast

EVgo Stock Forecast: Momentum Summary

Indicator
Trend
Price
Lower
Volume
NA
Performance versus NASDAQ
Same
Technical
Sell
Social Media Sentiment Trend
Negative

EVgo Stock Forecast: Support and Resistance

Source
Support
Resistance
Recommendation
$ 7.80 (S3)
$ 8.51 (R1)
Sell
$ 7.38 (S3)
$ 8.60 (R1)
Sell

Latest Trading Chart

EVGO Stock Forecast

Also read: Lucid Stock Forecast

EVgo Stock Forecast: Latest News and Tweets

Originally tweeted by $TSLA Fanboy (@MdsbrainMark) on January 7, 2022.

Debating doubling down on my investment in $EVGO as I believe the company has great potential as the EV transition kicks off. Am I crazy? I already have a sizable position but the stock has stayed so low it’s tempting to go big while I can.

Shares Of EVgo Inc. (NASDAQ: EVGO): Are They Overvalued Compared To Others?
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EVgo Inc. (EVGO) Is Worth Looking, Despite -62.90% Drop From High

EVgo Stock Forecast: Social Media Sentiment Analysis

Period
Positive Sentiment
Negative Sentiment
Net Sentiment
Last 7 Days
8.5%
8.1%
Neutral
Last 24 hours
19.9%
11.3%
Negative

EVgo Stock Forecast: 12 Month Forecast

Source
Overall Consensus
Upper Range
Lower Range
CNN Money
BUY
$22
$11
Nasdaq
BUY
$18
$10
Investment.com
BUY
$22
$11

EVgo Q3 Results and New Boost in Form of Infrastructure Bill.

  • EVgo reported Q3 results on 9.11.2021 and revenue increased 29% quarter over quarter as retail and fleet segments witnessed solid activity over second quarter and network throughput increased to 8.0 Gigawatt hours, 31% increase over second quarter.
  • EVgo increased its full year 2021 guidance and now projects $20-22million revenue, up from $20 million previously and network throughput of 24-26 GWh and expects to deliver 280-320 newly operational stalls.
  • But, the rally seen in EVGO stock last month is majorly due to infrastructure bill worth $1.2 trillion aimed at providing funds to support the expansion of nation’s electric vehicle infrastructure. Specifically, $7.5 billion is earmarked to build country wide network of EV chargers.
  • There are other ways also, bill supports expanded use of electric vehicles and it is expected to generate demand for EV charging stations, which goes beyond federal government’s planned direct spending on EV charging stations.
  • President Joe Biden announced this year that at least 50% of vehicles sold in US by 2030 will be electric and country needs robust public charging stations for this. Right now US has more than 100,000 publicly accessible EV chargers but country is still behind China and many European Nations.

Recent Decline After Analysts Downgrades Rating

  • Credit Suisse analyst Maheep Mandloi downgraded his rating to neutral from outperform, citing the stock recent unrealistic rally which has factored all the positive news like its partnership with GM and infrastructure bill and do not see a major upside going forward.
  • Bank of America analyst Ryan Greenwald downgraded EVgo stock to underperform from neutral, maintaining the price target of $11 citing the current situation as “charging euphoria”. Also Greenwald is wary of expiry of lockup period of more than 70 percent EVgo outstanding shares at the end of the year.

Challenges for EV Charging Companies:

  • All the EV charging companies like ChargePoint and EVgo are posting earning losses right now. EVgo posted an operating loss of $25.9 million in the third quarter. This is mainly because of large upfront expanses involved in developing required infrastructure and daily expanses to keep them upbeat.
  • Companies like Tesla are developing their own charging network and that can take away a sizable chunk of customers from these companies like EVgo. However, EV charging companies are adopting different strategies but a matter of fact is that they face stiff completion in the near future.

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 valuations perspective.
  • There is mix of positive and negative news for EVgo with infrastructure bill in pipeline and recent partnership, but still it could not attract analysts and they have termed it euphoria state citing stiff completion.
  • Firstly, it is to be acknowledged that EVgo is taking right steps for future growth and valuations will be justified only with growth trajectory. With Government impetus and right strategy, EVgo can leap forward in 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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