EVgo, Inc. (NASDAQ:EVGO) is a market leader, with more than 800 direct current fast charging sites across the U.S., and a serviceable available market that is projected to grow at a compounded annual rate of around 25% over the next 20 years, according to Evercore ISI.

The EVgo Analyst: James West initiated coverage of EVgo with an Outperform rating and $18 price target.

The EVgo Takeaways: The company owns and operators fast charging stations that are critical for the electrical vehicle ecosystem, West said in the initiation note.

“We believe EV growth is part 'push' (regulation) and part 'pull' (consumer adoption). Government and auto OEMs support the electrification and decarbonization of mobility,” the analyst said. 

“EVgo has a differentiated business model targeting key OEM relationships to capture customers, building dedicated fleet charging stations that experience higher utilization rates, and leveraging its proprietary data to select premier charging locations,” he said. 

“The electrification of mobility is also an ESG related theme and EVgo is the only EV charging network that uses 100% renewable power and has powered 263 million zero emissions miles,” West said. 

EVGO Price Action: Shares of EVgo were down 2.17% at $11.30 at last check Tuesday. 

Photo: an EVgo charging station. Courtesy photo.