2023-03-27 06:58:08 ET
EVgo ( NASDAQ: EVGO ) was sized up JPMorgan ahead of the electric charging network company's earnings report on March 30.
EVgo ( EVGO ) is noted to have attractive and growing partnerships across car OEMs, ride-share, and autonomous driving fleets. Analyst Bill Peterspn and teamm anticipate an increasing portion of subscription-like revenue for the company with potential margin upside due to an increasing mix of software contributions and better energy rates. However, the overall view that upside potential is balanced at the December price target of $6.00 leaves the firm with a Neutral rating in place.
The price target of $6 is based on a blended average of future-dated EV/Revenue and EV/EBITDA discounted back to 2024. JPMorgan appied a 4X EV/Revenue multiple and 12.5X EV/EBITDA multiple, and discount back at an rate.
Shares of EVgo ( EVGO ) moved up 1.65% premarket to $5.59 vs. the 52-week trading range of $3.64 to $14.23.
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EVgo is sized up by JPMorgan ahead of earnings