Investors should consider betting on Allego, a provider of electric vehicle charging infrastructure positioned to benefit from growing EV adoption and potentially more than double its share price, according to Credit Suisse. Analyst Maheep Mandloi initiated coverage of Allego with an outperform rating and a $10 price target, saying in a note to clients that the company will benefit from a demand backlog slated for building over the next two and a half years. Credit Suisse also expects demand for EV charging in Europe to grow 11 times between 2022 and 2030. “Allego benefits from rapidly growing EV adoption, supportive policies, and incentives,” Mandloi said in a note to clients Friday. “The stock has been under pressure due to capital needs, but we are positive on Allego owing to its market leadership, strong backlog, and expanded debt facilities that help meet its near-term cash needs.” The bank also believes that Allego retains access to near-term financing to sustain its cash needs. Shares of the Europe-based company have cratered more than 54% this year and 84% from their highs but could rally more than 121% from Thursday’s close based on the firm’s price target. Allego’s stock rose about 5% in premarket trading. — CNBC’s Michael Bloom contributed reporting
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