Stem price target raised to $6 from $5 at BofA

BofA analyst Julien Dumoulin-Smith raised the firm’s price target on Stem to $6 from $5 and keeps an Underperform rating on the shares. The firm’s discussions ahead of the print “suggest a relatively benign update with limited surprises,” says the firm, which revised estimates as it expects that Stem being short batteries in the year will likely materialize in a net benefit to hardware gross margins in Q3-Q4. However, it reiterates its Underperform rating given what it calls a “still opaque execution ramp.”