Why Is EVgo (EVGO) Stock Rocketing Higher Today

What Happened?

Shares of electric vehicle charging company EVgo (NASDAQ:EVGO) jumped 8.1% in the morning session after UBS analyst William Grippin upgraded the stock from Neutral to Buy and raised the price target from $4 to $8.5. The new price target represents a potential 20% increase from where shares traded before the upgrade was announced. The analyst added, "A $1.1 billion Energy Department loan guarantee and lower odds that Republicans will sweep the November elections are de-risking the company's outlook." After the initial pop the shares cooled down to $6.65, down 5.8% from previous close.

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What The Market Is Telling Us

EVgo’s shares are extremely volatile and have had 78 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

EVgo is up 101% since the beginning of the year, and at $6.65 per share, it is trading close to its 52-week high of $7.20 from October 2024. Investors who bought $1,000 worth of EVgo’s shares at the IPO in November 2020 would now be looking at an investment worth $676.76.

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