Stem

STEM · NYSE

$3.50+$0.09 (+2.64%)TodayMarket closed · Oct 20, 5:34 PM ET

Prev close $3.41

STEM analyst rating

HoldConsensus of 3 analysts over the last 12 months. 33% rate it a buy.

Strong buy0
Buy1
Hold2
Underperform0
Sell0

12-month price target · 7 analysts

Average $9.64 (+175.4% upside)

Low: $6.82
Now: $3.50
High: $18.90

Upgrades and downgrades

The latest rating actions, newest first

STEM analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Susquehanna	Oct 14, 2026	Maintains	Neutral	$7.50 → $4.50	49%
UBS	Sep 25, 2026	Upgrade	Neutral → Buy	$7.00	45%
UBS	Aug 14, 2026	Maintains	Neutral	$10.50 → $7.00	45%
Barclays	Jul 27, 2026	Maintains	Equal-Weight	$18.00 → $8.00	46%
Susquehanna	Jul 10, 2026	Maintains	Neutral	$10.00 → $7.50	49%
UBS	May 11, 2026	Maintains	Neutral	$12.00 → $10.50	45%
Susquehanna	Apr 9, 2026	Maintains	Neutral	$21.00 → $10.00	49%
UBS	Mar 10, 2026	Maintains	Neutral	$18.00 → $12.00	45%
Barclays	Oct 31, 2025	Maintains	Equal-Weight	$13.00 → $18.00	46%
UBS	Oct 31, 2025	Maintains	Neutral	$16.00 → $18.00	45%

The case for and against

Updated Aug 21, 2025

Bull case

Stem Inc. projects a year-end annual recurring revenue (ARR) of $55-65 million, representing a 15% year-over-year increase at the midpoint, underpinned by growth in its service segment and improved service margins. The company's valuation has been positively adjusted to reflect a higher proportion of revenues from recurring software streams, indicating a shift away from traditional EBITDA metrics, further underscoring a path toward positive EBITDA. Additionally, anticipated easing of the solar supply chain is expected to enhance revenues from solar monitoring, driven by growing demand for Stem’s Athena software platform and professional services, positioning the company for significant growth in both U.S. markets.

Bear case

Stem Inc faces significant challenges reflected in its financial performance and projections, which contribute to a negative outlook on its stock. The company reported negative GAAP gross margins of -4.3% and a GAAP EPS of -$0.32, which fell short of consensus estimates, indicating difficulties in profitability. Additionally, guidance for software and service revenue suggests limited growth potential, coupled with a reduced EBITDA estimate for 2025, which has been adjusted down from $20 million to $5 million, reflecting concerns regarding the scalability of the Athena software platform and overall contracted asset under management growth.

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