Update shared on15 Aug 2025
Analysts maintain a neutral outlook on Stem as a 20-1 reverse stock split drove a nominally higher price target, but ongoing concerns about long-term financial sustainability temper otherwise positive developments in software growth, margins, and liquidity, leaving fair value unchanged at $11.93.
Analyst Commentary
- Significant increase in price target reflects the company's 20-1 reverse stock split.
- Solid quarterly results with strong software growth and improving margins support a positive outlook.
- Recent debt exchange has alleviated near-term liquidity pressures.
- Despite improvements, further capital may be required if profitability does not continue to improve.
- Neutral positioning maintained due to ongoing concerns about the company’s long-term financial sustainability.
What's in the News
- Stem reaffirmed 2025 earnings guidance, projecting revenue between $125 million and $175 million.
- Brian Musfeldt appointed CFO, replacing Doran Hole; Musfeldt previously served as CFO of AlsoEnergy (acquired by Stem) and ikeGPS.
- Company approved and implemented a 1-for-20 reverse stock split and reduced authorized shares from 500 million to 250 million.
- Stem deployed its advanced energy system at the Camino Solar project in California (Avangrid), delivering clean energy to about 14,000 homes.
- Norbut Solar Farms standardized on Stem's PowerTrack software to manage and expand its solar portfolio; Stem also provided engineering support for the Green River Energy Center, a major clean power project in the Mountain West.
Valuation Changes
Summary of Valuation Changes for Stem
- The Consensus Analyst Price Target remained effectively unchanged, at $11.93.
- The Future P/E for Stem remained effectively unchanged, at 5.81x.
- The Consensus Revenue Growth forecasts for Stem remained effectively unchanged, at 18.2% per annum.
Disclaimer
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