STEM - Stem rated Outperform in new research coverage at Evercore ISI

2023-05-24 13:34:30 ET

Stem ( NYSE: STEM ) was rated Outperform in new research coverage by analysts at Evercore ISI. They said the energy-storage company is poised for growth and expansion into clean-energy businesses such as electric-vehicle charging, wind power and hydrogen fuel.

“The company’s proprietary Athena platform provides scalable and comprehensive monitoring, control, optimization and reporting capabilities for solar and energy storage systems,” James West, analyst at Evercore ISI, said in a May 23 report.

Stem’s ( STEM ) sales are front-loaded toward hardware, while software revenue is ongoing.

“Approximately 86% of Stem's 2022 revenue was generated from hardware sales. However, this figure does not accurately reflect the company's overall business as software contracts are signed for extended periods,” according to Evercore ISI. “It's important to note that hardware and software sales are recorded separately, and Stem's offerings include both hardware with software and software-only sales.”

Evercore ISI set a price target of $11 a share on Stem ( STEM ), based on an enterprise value-to-revenue multiple of 2.5 times estimated revenue of $830 million for 2024.

Seeking Alpha contributor Pacifica Yield has a Hold rating on Stem ( STEM ) because of concerns about its cash burn . Columnist Gino Bruno D'Alessio rates Stem ( STEM ) as a Strong Sell based on its increased losses .

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