Stem named a Best Idea at TD Cowen, seeing profitability coming in Q4 (NYSE:STEM)
Stem Inc. (NYSE:STEM) +6.9% in Thursday’s trading as TD Cowen named the stock as one of its Best Ideas for 2024, saying it is well positioned to benefit from the increasing demand for energy storage solutions and noting significant traction in the muni and co-op markets.
Stem’s (STEM) unified Athena platform continues to be a key differentiator for the company, and the new PowerBidder Pro should help further drive software related revenues, according to TD analysts Thomas Boyas and Jeffrey Osborne.
The company’s focus on software should help it reach positive full-year adjusted EBITDA in 2024, with profitability beginning Q4 2023, the analysts said, adding Stem (STEM) has continued to demonstrate strong execution in the past several quarters.
“We see Stem as the leader in the energy storage space relative to its more nascent peers,” the analysts wrote, expecting multiple expansion “as Stem executes against its goal of transition toward a higher mix of software and market participation services.”
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