Stem Inc Class A

STEM: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$3.73	Cxjb	Bfknl

Stem Announces Convertible Note Offering; Lowering Fair Value Estimate to $6

Brett Castelli

Mar 30, 2023

We reduce our fair value estimate for no-moat Stem to $6 per share from $8 following the company's March 30 convertible debt offering. Our decreased fair value is a result of a lower long-term margin profile as we expect a more gradual improvement in profitability. Stem shares sold off 10% following news of the convertible debt offering, but we encourage investors to remain on the sidelines.

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