Stem price target lowered to $2.50 from $5 at UBS

UBS analyst Jon Windham lowered the firm’s price target on Stem to $2.50 from $5 and keeps a Buy rating on the shares. The company’s Q1 results were well below expectations due to a $33M non-cash revenue adjustment but the firm remains positive on the stock and expects Stem’s gross margin to continue to increase as they continue to prioritize software, the analyst tells investors in a research note.