JPMorgan downgraded EVgo to Neutral from Overweight without a price target after assuming coverage of the name. EVgo offers an attractive opportunity for long-term investors due to its recurring business model and its ability to grow faster than the U.S electric vehicle market, the analyst tells investors in a research note. However, JPMorgan sees limited near-term positive catalysts and says EVgo's long-term margin potential could take an extended period of time to prove out. The company's margins will "remain subdued" through at least Q3, contends the firm.
