Stem price target raised to $16 from $8.60 at UBS

UBS raised the firm’s price target on Stem (STEM) to $16 from $8.60 and keeps a Neutral rating on the shares. UBS expects Stem to continue building a higher proportion of revenue and profit from recurring long dated service contracts, requiring less balance sheet funding and more predictable earnings and away from volatile and uncertain hardware sales, the analyst tells investors in a research note.