Stem Inc Class A
STEM: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$2.28 | Bhp | Wwf |
Stem Announces Convertible Note Offering; Lowering Fair Value Estimate to $6
We reduce our fair value estimate for no-moat Stem to $6 per share from $8 following the company's March 30 convertible debt offering. Our decreased fair value is a result of a lower long-term margin profile as we expect a more gradual improvement in profitability. Stem shares sold off 10% following news of the convertible debt offering, but we encourage investors to remain on the sidelines.