EVgo (EVGO) said late Thursday it has finalized a $1.25 billion, low-interest loan facility from the Department of Energy to finance construction of 7,500 electric vehicle fast-charging stalls by 2029. JPMorgan analyst Bill Peterson called the news an "early holiday gift to investors." EVgo stock jumped in early Friday trading, putting it in striking distance of a buy point.

Peterson said the loan will cover 80% of project costs, with the other 20% financed by cash flows. That means investors won't see their stakes diluted by a secondary share offering to finance growth.

EVgo Stock A 'Top Pick'

JPMorgan kept an overweight rating on EVgo stock and called it a top pick within "Clean Tech."

Despite some talk that the incoming Trump administration will review last-minute loans issued by the Biden administration, Peterson said he sees minimal risk that the loan would be clawed back.

EVgo Near Early Entry

EVgo stock raced up 12.5% to 6.93 in premarket trade. A move past its 50-day moving average that clears Tuesday's intraday high of 7.15 would offer aggressive investors an early entry opportunity.

EVgo rocketed 60.8% on Oct. 3, when a conditional commitment for the DOE loan was first announced. It peaked just above 9.07 on Oct. 25.

Among a trio of EV charging plays, including ChargePoint (CHPT) and Wallbox (WBX), EVgo is the clear standout at this point. Tesla (TSLA), which agreed to open up its Supercharger network to non-Tesla EVs, remains a formidable competitor.

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