EVgo Stock: Buy, Sell, or Hold?

Core Insights - EVgo, a prominent EV charging network builder, went public in July 2021 through a SPAC merger, with its stock price declining from an opening of $15.05 to approximately$4 [1] Business Overview - EVgo operates over 1,000 fast charging stations across 40 states, with around 145 million people living within 10 miles of a charger [4] - The company offers individual charging payments and encourages subscription plans starting at $6.99 per month [4] - EVgo has undergone several ownership changes, being sold by NRG to Vision Ridge Partners in 2016, then to LS Power in 2020, which later merged it with a SPAC [3] Financial Performance - Revenue growth from 2021 to 2023:$22 million in 2021, $55 million in 2022, and$161 million in 2023, reflecting year-over-year growth rates of 70%, 146%, and 195% respectively [5] - Despite revenue growth, EVgo reported negative adjusted EBITDA of ($51 million) in 2021, ($80 million) in 2022, and ($59 million) in 2023 [5] - For the full year, EVgo expects revenue to rise 55$250 million-$265 million, with a negative adjusted EBITDA of$32 million-$38 million [7] Growth Projections - Analysts forecast a compound annual growth rate (CAGR) of 44$189 million, but it still reported a negative adjusted EBITDA of ($49 million) [15] - The number of operational stalls grew to 3,680, with over 1.2 million customers [15] Market Sentiment - EVgo's stock is perceived as undervalued relative to its growth potential, but the company has increased its outstanding shares by 56% since the SPAC merger [16] - Insider sentiment appears negative, with insiders selling nearly four times as many shares as they bought in the past year, suggesting limited short-term stock appreciation [17]