Wall Street Favorites: 3 EV Charging Stocks With Strong Buy Ratings for April 2024

Industry Overview - The U.S. EV charging market is projected to grow nearly tenfold, from approximately 4 million charge points currently to 35 million by 2030, driven by the anticipated increase in electric vehicle (EV) adoption [1] - The number of EVs in the U.S. is expected to rise sharply to 27 million by 2030 and 92 million by 2040, compared to about 3 million in 2022 [1] - McKinsey estimates that the U.S. will require around 28 million charging ports by 2030, with private ports increasing from about 2.5 million to 27 million [1] Company Analysis EVgo (EVGO) - EVgo's stock price has fluctuated, recently pulling back to $2.16 after reaching around $3.37, showing potential for a bounce [3] - The company reported a wider loss of $0.12 per share in the recent quarter, compared to $0.06 year over year, but sales increased by 83.6% year over year to $50 million, exceeding expectations [3] - Analysts at RBC Capital upgraded EVgo to an outperform rating with a target price of $4, citing the company's favorable position in the electrification trend [3] Beam Global (BEEM) - Beam Global's stock is currently trading at $5.90, down from a peak of $8.50, and is considered a long-term buy [5] - The company is expanding in Europe and has received a U.S. patent for wireless EV charging technology, which is expected to enhance deployment efficiency [5] - Beam Global has secured contracts with federal clients, including the FDA and the Missile Defense Agency, indicating strong growth potential [5] Allego (ALLG) - Allego's stock has seen significant volatility, rising from about $0.06 to $2.11, and is currently trading at $1.13, suggesting long-term investment opportunities [6] - The company operates a network of approximately 35,000 charging stations across 16 countries and has partnered with Ford to enhance charging infrastructure in Europe [6] - Allego is also collaborating with Burger King France to install ultra-fast chargers at various locations over the next three years, further expanding its market presence [7]