Stem price target lowered to $3.70 from $6.00 at Roth MKM

Roth MKM lowered the firm’s price target on Stem to $3.70 from $6.00 and keeps a Neutral rating on the shares. With Inflation Reduction Act support and declining battery pricing, demand is likely to remain strong despite headwinds that include permitting, interconnection, and financing costs, the analyst tells investors in a research note. The firm is reducing its price target however given the recent rise in interest rates and peer group multiple compression.