{"id":32119,"date":"2026-03-14T18:53:09","date_gmt":"2026-03-14T18:53:09","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/32119\/"},"modified":"2026-03-14T18:53:09","modified_gmt":"2026-03-14T18:53:09","slug":"why-ubs-cut-stems-price-target-despite-improved-software-mix-and-ebitda","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/32119\/","title":{"rendered":"Why UBS Cut Stem\u2019s Price Target Despite Improved Software Mix and EBITDA"},"content":{"rendered":"\n

Stem, Inc. (NYSE:STEM) is one of the best renewable energy penny stocks to buy<\/a>.<\/p>\n

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\u2019s fourth-quarter 2025 results, which the company had released on March 4.<\/p>\n

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 million.<\/p>\n

\"Why Why UBS Cut Stem\u2019s Price Target Despite Improved Software Mix and EBITDA <\/p>\n

sabrisy\/Shutterstock.com<\/p>\n

For full-year 2025, revenue increased 8% to $156.3 million, while software, services, and edge hardware revenue climbed 25% to $141.4 million. Stem also posted full-year adjusted EBITDA of $6.7 million, compared with a loss of $22.8 million in 2024, and ended the fourth quarter with $48.9 million in cash and cash equivalents.<\/p>\n

Stem, Inc. (NYSE:STEM) provides software, services, and energy management technology for clean energy assets, helping customers monitor, optimize, and operate storage, solar, and other distributed energy systems across global markets.<\/p>\n

While we acknowledge the potential of STEM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock<\/a>. READ NEXT: 33 Stocks That Should Double in 3 Years<\/a> and 15 Stocks That Will Make You Rich in 10 Years<\/a> Disclosure: None. Follow Insider Monkey on Google News<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Stem, Inc. (NYSE:STEM) is one of the best renewable energy penny stocks to buy. On March 10, 2026,…\n","protected":false},"author":2,"featured_media":32120,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[459,19275,223],"class_list":["post-32119","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-renewable-energy","tag-stem","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116229046515385584","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/32119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=32119"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/32119\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/32120"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=32119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=32119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=32119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}