
Stem, Inc (STEM) Stock Forecast & Price Target
Stem, Inc (STEM) Analyst Ratings
Bulls say
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.
Bears say
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.
This aggregate rating is based on analysts' research of Stem, Inc and is not a guaranteed prediction by Public.com or investment advice.
Stem, Inc (STEM) Analyst Forecast & Price Prediction
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