After falling steadily for some weeks, EVgo (EVGO -3.23%) rebounded sharply this week, surging 27% at its highest point in trading through 2 p.m. ET Friday, according to data provided by S&P Global Market Intelligence.

Investors might be worried about the fate of EVs under the Trump administration, but at least one analyst believes EVgo could soon get big funding that should propel the electric vehicle (EV) charging stock.

The biggest reason why this analyst is bullish on EVgo stock

In October, EVgo received a conditional commitment for a $1.05 billion loan guarantee from the U.S. Department of Energy (DOE) to accelerate the expansion of the EV charging network in the nation. EVgo is one of the nation's largest public EV charging networks, with over 1,000 fast-charging locations across 40 states.

JPMorgan analyst Jim Peterson now believes EVgo could secure the DOE loan in the coming weeks and put the stock on "positive catalyst watch." Peterson expects EVgo to upgrade its earnings before interest, tax, depreciation, and amortization (EBITDA) targets once it secures the loan.

While investors in EVs fear the Trump administration could kill the $7,500 EV tax credit and hurt demand for EVs, Peterson believes EVgo should still grow, as the company's business model doesn't rely heavily on federal incentives. Peterson has a price target of $8 on EVgo stock.

EVgo is steadily growing its EV charging network. It added 270 new operational stalls in the third quarter, and its network throughput more than doubled year over year during the quarter.

This week, EVgo also extended its partnership with grocery retailer Meijer and plans to deploy 480 new public fast-charging stalls at Meijer properties in the Midwest.

Should you buy EVgo stock?

On Nov. 12, EVgo reported a 92% year-over-year jump in its revenue for the third quarter and upped its full-year revenue guidance slightly to $250 million to $265 million. It also raised the midpoint of adjusted EBITDA guidance and expects adjusted EBITDA to break even by 2025.

For now, the biggest potential catalyst for EVgo stock will be the DOE loan. If the company secures the loan, it should be able to expand its network and revenues rapidly, which should send the stock price even higher.