Stem Inc, the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Ameet Thakkar from BMO Capital maintained a Hold rating on the stock and has a $18.00 price target.
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Ameet Thakkar has given his Hold rating due to a combination of factors surrounding Stem Inc’s current business trajectory and financial outlook. The company is transitioning towards a more focused software and services model, moving away from battery energy storage system hardware resale. This shift has brought some stability, as reflected in the narrowed FY 2025 guidance ranges, although operating cash flow expectations have been adjusted downward, indicating a tighter financial position.
A key concern is the stagnant growth in contracted annual recurring revenue and backlog, which suggests limited near-term EBITDA growth potential despite the company’s presence in a growth sector. While there is optimism around the new PowerTrack EMS application, which could drive future revenue, the current financial metrics and competitive landscape present challenges. Consequently, Thakkar has modestly reduced growth projections and adjusted the target price, leading to a Hold rating for Stem Inc.
According to TipRanks, Thakkar is an analyst with an average return of -17.8% and a 42.74% success rate. Thakkar covers the Technology sector, focusing on stocks such as Enphase Energy, First Solar, and SolarEdge Technologies.
In another report released on October 25, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $24.00 price target.