Stifel thinks EVgo is poised to benefit from the continued growth and adoption of electric vehicles. The firm initiated the maker of fast-charging stations for electric vehicles with a buy rating and a price target of $9 per share. That represents about 57% upside from Tuesday’s $5.73 closing price. The company boasts at least 850 chargers across 30 states. EVGo maintains the second-largest network of DC chargers, trailing only Tesla. DC chargers provide more output power directly to car batteries for more efficient charges in less time compared to traditional AC outlets. On top of that, Stifel thinks that the government mandates to move toward cleaner technologies such as electric vehicles will help the company grow, while more traditional carmakers continue to enter the EV space. EVGO YTD mountain EVGo in 2023 “We expect robust U.S. EV sales growth over the next decade fueled by Government mandates, the proliferation of new models from both legacy automakers and EV OEMs, and consumer demand,” analyst Stephen Gengaro said Tuesday. “EVgo’s large, growing fast charging network positions it well to capitalize on this trend, supported by NEVI funding and support from partners.” To be sure, risks persist, Gengaro added, specifically given the company’s dependence on outside manufacturers and EVGo’s potential need for public equity to successfully reach growth targets. Still, Stifel thinks EVGo will see strong annual revenue growth going forward. The firm projects revenue of $132 million, $241 million and $428 million in 2023, 2024 and 2025, respectively. — CNBC’s Michael Bloom contributed reporting.