ZhITong Finance APP learned that the USA electric car charging network operator$EVgo Inc (EVGO.US)$has obtained a conditional loan guarantee of up to $1.05 billion from the US Department of Energy to facilitate the expansion of its electric car charging network in communities across the USA.

As of the time of publication, EVGO has risen nearly 40%.

Obtaining this low-cost debt financing from the US Department of Energy's Loan Programs Office will help add approximately 7,500 fast charging stations across different parts of the USA. The largest state markets are expected to be Arizona, California, Florida, Georgia, Illinois, Michigan, New Jersey, New York, Pennsylvania, and Texas.

If finalized, EVgo expects to complete the deployment of new stations by 2030. The company estimates that the expansion project will create over 1,000 jobs, with more than 700 being contracted resources directly hired by the company.

At the same time, jpmorgan expressed in research reports that they have upgraded EVgo's rating from "Neutral" to "Shareholding" and included the stock on the Active Catalyst Watchlist, with a target price of $7.

Analyst Bill Peterson stated that EVgo has highly attractive and continuously growing partnerships in areas such as automotive OEMs, ride-sharing, and autonomous vehicle fleets. Peterson and his team anticipate strong revenue growth for EVgo over the next few years, even in the face of a slowdown in electric vehicle adoption, based on higher utilization rates, higher tariffs, and continued network expansion accelerated by the loans from the US Department of Energy.

"We anticipate that stable network throughput growth, steady or slightly improved gross margin, and better operational leverage will enable the company to achieve breakeven adjusted EBITDA by 2025," Peterson stated.

Editor/ping