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J.P. Morgan Securities upgraded EVgo stock to "overweight"
The shares of EVgo Inc (NASDAQ:EVGO) are up 4.9% at $12.77 at last check, after J.P. Morgan Securities initiated coverage on the electric vehicle stock with an "overweight" rating. The firm also hit EVGO with a price target of $20, noting that the stock has potential for outsized revenue growth thanks to increasing fleet adoption, higher utilization, and potential tailwinds from U.S. President Joe Biden's "Build Back Better" bill. Separately, EVgo stock is being boosted by its wholly-owned subsidiary Recargo, whose electric vehicle charging station map app PlugShare exceeded 1 million downloads in 2021.
It wasn't long ago that the stock was receiving bearish attention, after at least one analyst said the security's mid-November surge already had the benefits of the infrastructure bill priced in. However, coming into today, the majority of brokerages were overwhelmingly bullish toward EVGO, with four of six calling it a "strong buy." Meanwhile, the 12-month consensus price target of $18.33 is a 4.4% premium to current levels.
A short squeeze be in play should short sellers start hitting the exits. Short interest has increased 51.9% in the last two reporting periods, yet the 13.66 million shares sold short make up 20.3% of EVGO's available float.
Prior to this week, EVGO was in the midst of a sharp rejection from the $20 level. But the shares' 50-day moving average --which coincides with the $11 level -- contained the pullback. That $11 area was support earlier in 2021 before a mid-August bear gap. EVgo stock is pacing for its fourth-straight daily win, which helps add to its nearly 29% year-over-year lead.
