Stem upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Stephen Byrd upgraded Stem to Overweight from Equal Weight with a $15 price target. The analyst believes improvement in global battery supply, Inflation Reduction Act support and Stem’s focus on driving higher margin software sales positions the company as an attractive energy storage play into 2023. He likes the company’s approach to profitability with its focus on recurring software revenue rather than on storage hardware, which he believes is becoming increasingly commoditized.