2023-05-17 10:16:21 ET
EVgo ( NASDAQ: EVGO ) shares were jolted downward by a public offering of $125M of Class A common stock announced on Tuesday evening.
Shares of the Los Angeles-based EV charging company fell about 15% shortly after the market open.
On the more optimistic end, Stifel started coverage of the name with a Buy rating and a $9 price target on Tuesday evening, perhaps suggesting an opportune entry point at present in their view. Indeed, the firm maintained its Buy rating even as the capital raise was announced just hours after its analysts’ bullish initiation.
The team highlighted EVgo’s ( EVO ) “strong market position as the second largest player in the DC fast charging market” and “solid track record of selecting locations with a targeted IRR in the low double digits over the 7-8 year life of the asset” as key factors driving their Buy initiation. Additionally, a contract with pilot Flying J is expected to support the stock in the near term.
Shares of EVgo ( EVGO ) nonetheless slipped 14.75% on Wednesday due to the after hours announcement on Tuesday .
For further details see:
EVgo stock slides over 10% on stock offering, but Stifel stays bullish