BMO Capital analyst Ameet Thakkar initiated coverage of Stem with a Market Perform rating and $3.50 price target. The company is a developer of energy storage systems and purchases storage hardware from third parties with an eye to attaching its higher margin proprietary storage and solar optimization software products to customer sites, the analyst tells investors in a research note. Despite the stock’s recent underperformance, the firm is cautious as believes competition can provide software and are more vertically integrated on hardware supply. BMO could become more constructive on Stem shares on signs higher-value product segments exceed its growth assumptions.
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Published first on TheFly
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