Susquehanna Cuts Stem (NYSE:STEM) Price Target to $7.50

Key Points

• Susquehanna cut its price target on Stem from $10.00 to $7.50 while keeping a neutral rating, implying only modest upside from the current share price.
• Overall analyst sentiment on Stem remains cautious: the stock has an average rating of “Reduce” and a consensus target price of $11.75, with several recent downgrades or lowered price targets from other firms.
• Stem’s latest quarterly results were weak, as it reported a loss of $2.22 per share and revenue of $29.0 million, both below expectations. The stock also trades near its 52-week low after a sharp decline from its high.

Stem (NYSE:STEM - Get Free Report) had its price target dropped by equities researchers at Susquehanna from $10.00 to $7.50 in a research note issued on Friday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Susquehanna's target price would indicate a potential upside of 5.63% from the stock's current price.

STEM has been the subject of a number of other research reports. Roth Capital restated a "neutral" rating and issued a $11.00 price objective on shares of Stem in a research note on Thursday, May 7th. Weiss Ratings downgraded shares of Stem from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, April 29th. Wall Street Zen downgraded shares of Stem from a "sell" rating to a "strong sell" rating in a report on Saturday, May 9th. Finally, UBS Group reaffirmed a "neutral" rating and issued a $10.50 price objective (down from $12.00) on shares of Stem in a research report on Monday, May 11th. Three equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $11.75.

Stem Stock Performance

Stem stock opened at $7.10 on Friday. Stem has a fifty-two week low of $6.70 and a fifty-two week high of $32.23. The stock has a market cap of $63.62 million, a PE ratio of -0.82 and a beta of 1.45. The firm's 50-day simple moving average is $8.58 and its 200 day simple moving average is $11.45.

Stem (NYSE:STEM - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported ($2.22) EPS for the quarter, missing the consensus estimate of ($1.76) by ($0.46). The business had revenue of $29.00 million for the quarter, compared to analysts' expectations of $34.61 million. As a group, analysts predict that Stem will post -7.76 EPS for the current fiscal year.

Hedge Funds Weigh In On Stem

Several large investors have recently modified their holdings of STEM. IFP Advisors Inc raised its position in shares of Stem by 258.1% in the third quarter. IFP Advisors Inc now owns 1,479 shares of the company's stock valued at $26,000 after purchasing an additional 1,066 shares during the period. International Assets Investment Management LLC purchased a new position in Stem in the 4th quarter valued at approximately $29,000. Zweig DiMenna Associates LLC bought a new stake in Stem during the 4th quarter valued at $125,000. Renaissance Technologies LLC purchased a new stake in shares of Stem during the fourth quarter worth $169,000. Finally, Wells Fargo & Company MN lifted its position in shares of Stem by 89.2% during the fourth quarter. Wells Fargo & Company MN now owns 11,646 shares of the company's stock worth $175,000 after acquiring an additional 5,492 shares in the last quarter. Hedge funds and other institutional investors own 61.63% of the company's stock.

Stem News Summary

Here are the key news stories impacting Stem this week:

• Neutral Sentiment: Multiple reports highlighted encouraging Parkinson’s disease stem-cell research, including feasibility and transplant-safety updates, but these developments are unrelated to Stem, Inc.’s core business. Stem cell-derived dopaminergic cell transplantation shows encouraging results for Parkinson's disease
• Neutral Sentiment: Education and community stories about increasing STEM programs, STEM camps, and STEM outreach may support general awareness of the “STEM” theme, but they do not provide a material catalyst for Stem, Inc. UNG launches bold vision for future of STEM
• Neutral Sentiment: Additional articles on stem-cell transplants, enamel regeneration, and related medical research were scientifically positive, but there is no direct link to Stem, Inc.’s operations or near-term earnings. Clinical trial finds stem cell brain transplants feasible for Parkinson's disease
• Neutral Sentiment: Press coverage of girls-in-STEM events, STEM education certifications, and summer camps is broadly constructive for the sector’s long-term talent pipeline, but it is not likely to move Stem, Inc. shares on its own. National Institute for STEM Education Certifies Its 10,000th Teacher for STEM Teaching
• Negative Sentiment: Stem, Inc. remains a small-cap stock under pressure from prior weak earnings and revenue misses, so absent a company-specific catalyst, the share price can stay volatile and below longer-term moving averages.

About Stem

Stem, Inc is a technology company specializing in AI-driven energy storage and optimization solutions for commercial, industrial and utility customers. The company delivers integrated hardware and software systems that enable clients to manage energy consumption, reduce peak demand charges and provide ancillary services to the power grid. By combining battery storage hardware with advanced machine-learning algorithms, Stem helps organizations align energy usage with cost-saving opportunities while supporting grid reliability and renewable integration.

At the core of Stem's offering is its Athena software platform, which uses real-time data and predictive analytics to forecast energy needs and automatically dispatch stored energy when it is most valuable.

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