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Cracking The Code: Understanding Analyst Reviews For Stem

Author: Benzinga Insights | February 29, 2024 03:00pm

5 analysts have shared their evaluations of Stem (NYSE:STEM) during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 1 3 0 0
Last 30D 0 1 2 0 0
1M Ago 0 0 0 0 0
2M Ago 1 0 0 0 0
3M Ago 0 0 1 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $4.05, a high estimate of $6.00, and a low estimate of $3.00. This current average represents a 26.36% decrease from the previous average price target of $5.50.

price target chart

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of Stem by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Biju Perincheril Susquehanna Lowers Positive $4.00 $5.50
Kashy Harrison Piper Sandler Lowers Neutral $3.00 $4.00
Ameet Thakkar BMO Capital Lowers Market Perform $3.25 $4.00
Brian Lee Goldman Sachs Lowers Buy $6.00 $7.00
Stephen Byrd Morgan Stanley Lowers Equal-Weight $4.00 $7.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Stem. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Stem compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Stem's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Stem analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

Discovering Stem: A Closer Look

Stem is a provider of energy storage systems. The company bundles third-party hardware with its proprietary Athena software to provide customers a turnkey solution. Stem sells its solutions to commercial and industrial customers as well as independent power producers and renewable developers. Its solutions help customers maximize renewable energy generation and help build a cleaner and more resilient grid. In 2022, the company acquired AlsoEnergy, a provider of solar asset management software.

Breaking Down Stem's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Positive Revenue Trend: Examining Stem's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 34.41% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Stem's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -57.63% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Stem's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -15.86%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Stem's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -5.31%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Stem's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.18, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Understanding the Relevance of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: STEM

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