A sharp reduction in Stem's consensus revenue growth forecast from 35.0% to 24.0% has led analysts to substantially lower their fair value estimate, as reflected in the decreased price target from $22.45 to $12.60.
What's in the News
- Stem successfully deployed its advanced energy system at the Camino Solar project in California, enabling grid integration and optimizing clean energy delivery for 14,000 homes.
- Brian Musfeldt was appointed Chief Financial Officer, succeeding Doran Hole, bringing extensive industry and M&A experience, including as former CFO of AlsoEnergy and ikeGPS.
- The board approved and executed a 1-for-20 reverse stock split, reducing the number of authorized common shares from 500 million to 250 million, and adjusted equity plans and convertible instruments accordingly.
- Norbut Solar Farms standardized on Stem's PowerTrack software to manage and scale its solar portfolio across New York, enhancing efficiency and compliance for over 525 MW deployed and 17 new projects planned.
- Stem provided engineering advisory and design support to Green River Energy Center, contributing to a major clean power project for the Mountain West region, backed by over $1 billion in financing.
Valuation Changes
Summary of Valuation Changes for Stem
- The Consensus Analyst Price Target has significantly fallen from $22.45 to $12.60.
- The Consensus Revenue Growth forecasts for Stem has significantly fallen from 35.0% per annum to 24.0% per annum.
- The Future P/E for Stem has significantly fallen from 6.89x to 4.75x.
Disclaimer
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