Stem Inc Class A
STEM: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$3.64 | Hrq | Zgqr |
Lowering Stem's Fair Value Estimate to $8 as We Await Further Scaling of Software Revenue
We reduce our fair value estimate for Stem to $8 per share from $10 following the company's fourth-quarter results and 2023 outlook. Our decreased fair value is a result of reducing our long-term gross margin forecast as we expect gross margin improvement to be more gradual than our prior forecast. Our no-moat rating remains unchanged. We view Stem shares as fairly valued.