Company Reports

We will discontinue analyst coverage of Stem on or about Feb. 2. We provide analyst research and ratings on over 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.

Clean energy stocks have had a roller-coaster 18 months. Optimism following the passage of the Inflation Reduction Act in August 2022 gave way to rising interest rates in 2023. We highlight three key themes for investors to focus on in 2024: interest rates, U.S. policy, and profitability.

We have lowered our fair value estimate to $3.50 from $5 for no-moat Stem following third-quarter results. The decrease is primarily driven by moderating our pace of long-term operating margin expansion as we await further scaling of software revenue. We view shares as fairly valued.

For much of its history, Stem was focused on providing energy storage systems to commercial and industrial customers, primarily in markets such as California where incentives helped spur demand.

We maintain our $5 fair value estimate for no-moat Stem following the company's second-quarter results. We view shares as overvalued after a rebound in recent months.

We have lowered our fair value estimate for no-moat Stem to $5 per share from $6 following the company's first-quarter results. The decrease is a result of reducing our long-term deliveries forecast due to balance sheet constraints. We view the shares as fairly valued.

For much of its history, Stem was focused on providing energy storage systems to commercial and industrial customers, primarily in markets such as California where incentives helped spur demand.

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.

Stem was an early entrant to the energy storage space; it was founded in 2009 and commenced commercial operations in 2013. For much of its history, Stem was focused on providing energy storage systems to commercial and industrial customers, primarily in markets such as California where incentives helped spur demand.

We reduce our fair value estimate for Stem to $8 per share from $10 following the company's fourth-quarter results and 2023 outlook. Our decreased fair value is a result of reducing our long-term gross margin forecast as we expect gross margin improvement to be more gradual than our prior forecast. Our no-moat rating remains unchanged. We view Stem shares as fairly valued.

Stem was an early entrant to the energy storage space; it was founded in 2009 and commenced commercial operations in 2013. For much of its history, Stem was focused on providing energy storage systems to commercial and industrial customers, primarily in markets such as California where incentives helped spur demand.

On Jan. 31, ChargePoint and Stem announced a commercial partnership for electric vehicle charging customers seeking to leverage each company's expertise. We maintain our fair value estimates and no-moat ratings for both companies. We view ChargePoint and Stem shares as fairly valued.

We lowered our fair value estimate for Stem to $10 per share from $12 after reviewing an updated slide deck the company released last week. The reduction to our fair value estimate is driven by a slight reduction to our revenue and gross margin forecasts. We view shares as fairly valued.

Stem was an early entrant to the energy storage space; it was founded in 2009 and commenced commercial operations in 2013. For much of its history, Stem was focused on providing energy storage systems to commercial and industrial customers, primarily in markets such as California where incentives helped spur demand.

We maintain our $12 fair value estimate for Stem following the company's third-quarter results. We view shares as fairly valued.

Stem was an early entrant to the energy storage space; it was founded in 2009 and commenced commercial operations in 2013. For much of its history, Stem was focused on providing energy storage systems to commercial and industrial customers, primarily in markets such as California where incentives helped spur demand.

We maintain our $12 fair value estimate for Stem following the company's analyst day. Our no-moat rating is also unchanged.

We've raised our fair value estimate for Stem to $12 per share from $10 following the company's second-quarter results. The main driver behind our increase is raising our long-term expectations for energy storage deployments as a result of the proposed Inflation Reduction Act of 2022.

Stem was an early entrant to the energy storage space; it was founded in 2009 and commenced commercial operations in 2013. For much of its history, Stem was focused on providing energy storage systems to commercial and industrial customers, primarily in markets such as California where incentives helped spur demand.

Less than two weeks after seemingly ending prospects of a climate spending bill, Sen. Joe Manchin and Senate Democrats announced support for the Inflation Reduction Act of 2022. While not final, the chances of ultimate passage appear high based on industry reports.