EVgo (EVGO) is poised to achieve a positive earnings before interest, taxes, depreciation, and amortization inflection in Q4, RBC Capital Markets said in a note Monday.

Even as electric vehicle sales growth remains sluggish, the company benefits from the growing electric vehicles in operation that continues to outperform installation counts, RBC said, adding that this dynamic remains supportive for the business model.

RBC noted that EVgo's 2025 guidance carried an "ancillary upside," with the upside scenario dependent on the timing of a potential contract close-out payment associated with dedicated stalls the company was building for an AV partner that has decided to exit the robotaxi business.

The company's 2025 net capital expenditure guidance is in the range of $100 million to $110 million, indicating enhanced capital efficiency and lower gross capex per stall, RBC added.

The firm maintained its outperform rating on the company with a $7 price target.

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