On Thursday, Needham reaffirmed a Hold rating on shares of EVgo Inc. (NASDAQ:EVGO), following discussions with the company's CFO at a recent industry conference.
Needham analysts hosted Paul Dobson, the CFO of EVgo, at the 27th annual Needham Growth Conference, which provided insights into the company's performance and market position.
The research firm remains optimistic about EVgo's strategic positioning, especially considering the rapid growth of electric vehicles (EVs) on U.S. roads.
This growth is surpassing the rate of installations for Direct Current (DC) fast chargers, which is leading to higher utilization rates of EVgo's charging network and, consequently, increased revenue.
The analysts said "We're bullish on EVGO's near term numbers, but we see DCFC supply vs demand dynamics as a lessening tailwind against increasingly difficult network throughput growth comps. "
Needham projects that the expansion of DC charging ports in fiscal year 2024 (FY24) will align closely with the estimated growth in the number of electric vehicles in operation.
Furthermore, expectations for EV adoption in fiscal year 2025 (FY25) are modest, as shifts in the political landscape could influence the market dynamics.
Despite being positive on EVgo's short-term financial figures, Needham suggests that the supply versus demand dynamics for Direct Current Fast Charging (DCFC) might become less of a growth driver as the company faces tougher comparisons in network throughput growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.