Stem stock price target raised to $13 from $7 at Roth/MKM on software growth

Published 11/08/2025, 13:48
Stem stock price target raised to $13 from $7 at Roth/MKM on software growth

Investing.com - Roth/MKM has raised its price target on Stem Inc. (NYSE:STEM) to $13.00 from $7.00 while maintaining a Neutral rating on the stock. The stock has shown strong momentum, gaining over 27% in the past six months, though it remains 62% below its 52-week high of $33.60.

The revision follows Stem’s second-quarter performance, which exceeded expectations across all metrics, with particular strength in high-margin software revenue growth. According to InvestingPro data, the company’s gross profit margin stands at 17.9%, though it faces challenges with a significant debt burden of $369.9 million.

Stem management reiterated its 2025 guidance, indicating the company is tracking toward the high end of all metrics except operating cash flow, which may trend toward the lower end of projections.

Roth/MKM has increased its estimates for Stem, modeling higher growth for the company’s software sales in both 2025 and 2026.

The firm cited Stem’s successful second-quarter debt reduction as a contributing factor to the price target increase, but maintained its Neutral rating as it awaits further progress toward profitability and improvement in the company’s balance sheet.

In other recent news, Stem Inc. reported a 13% increase in revenue for the second quarter of 2025, reaching $38.4 million. This financial performance highlights the company’s growth trajectory and strategic initiatives. Analyst firms have taken note of Stem’s recent achievements, although no specific upgrades or downgrades were mentioned. The company’s focus on energy management systems continues to draw investor interest. These developments are part of a series of recent updates from Stem Inc.

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