Stem downgraded to Neutral at Susquehanna on delayed recovery

As previously reported, Susquehanna downgraded Stem to Neutral from Positive with a price target of 50c, down from $2, following what the firm calls “another disappointing quarter.” While acknowledging “the rating change is late,” the firm notes that revenues were well below expectations and says the company “appears to be losing bookings momentum,” adding that it believes that a recovery could take time. A bigger concern than project delays from financing and interconnection headwinds that prompted a guidance cut is that bookings have come in well below expectations in consecutive quarters, the analyst added.