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Stock impact report

Why UBS Cut Stem's Price Target Despite Improved Software Mix and EBITDA [Yahoo! Finance]

Stem, Inc. Class A (STEM) 
US:NASDAQ Investor Relations: investor.stemcellsinc.com
Company Research Source: Yahoo! Finance
Stem, Inc. (NYSE:STEM) is one of the best renewable energy penny stocks to buy On March 10, 2026, UBS lowered its price target on Stem to $12 from $18 but kept a Neutral rating, citing a slower software sales outlook. The firm also reduced its adjusted EBITDA estimates for 2026, 2027, and 2028 to $10 million, $22 million, and $41 million, respectively, from prior forecasts of $17 million, $29 million, and $50 million. The revised target followed Stem's fourth-quarter 2025 results, which the company had released on March 4. Stem reported fourth-quarter 2025 revenue of $47.2 million, down 15% year over year, which the company said was mainly due to sharply lower battery hardware sales as part of its software-focused strategy. At the same time, software, services, and edge hardware revenue rose 62% to $46.5 million. Fourth-quarter non-GAAP gross margin improved to 45% from 36%, adjusted EBITDA rose to $5.5 million from $4.2 million, and net loss narrowed to $16.0 million from $51.1 Show less Read more
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