Evercore ISI Starts Stem Inc. (STEM) at Outperform, 'Growth Goes Parabolic'

May 23, 2023 4:39 PM EDT
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Price: $1.71 +5.56%

Rating Summary:
    11 Buy, 10 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 15 | Down: 11 | New: 13
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(Updated - May 23, 2023 4:40 PM EDT)

Evercore ISI analyst James West initiates coverage on Stem Inc. (NYSE: STEM) with a Outperform rating and a price target of $11.00.

The analyst comments "Rapid Growth & Focus on Profitability; OP Rating. Stem, a leading player in the energy storage market, is poised for rapid growth and expansion into new clean energy verticals such as EV charging, wind power, and hydrogen. The company’s proprietary Athena platform provides scalable and comprehensive monitoring, control, optimization, and reporting capabilities for solar and energy storage systems. With the global energy storage market projected to experience exponential growth, expected to reach 508GW/1,432GWh by 2030, and the U.S. accounting for 24.2% of the installed capacity, Stem is well-positioned to capture a significant market share. There are ongoing debates surrounding Stem’s classification as a SaaS company, as well as questions about the timing and realization of positive cash flow. Furthermore, the company’s ability to expand its solutions into adjacent markets and the potential impact of supply chain issues within the energy storage industry are important factors to consider in Stem’s growth story. We initiate coverage with an Outperform rating and an $11 price target. "

For an analyst ratings summary and ratings history on Stem Inc. click here. For more ratings news on Stem Inc. click here.

Shares of Stem Inc. closed at $4.33 yesterday.

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