Expect tax credits from the Inflation Reduction Act to boost this little-known battery storage stock by more than 60% in the months ahead, UBS said. Analyst Jon Windham initiated coverage of Stem with a buy rating and $19 price target in a note to clients Tuesday, suggesting a 64% rally for the stock from Monday’s close. “STEM is the market leader in the rapidly growing commercial storage market,” he said, noting that he expects order flow to ramp up in the first half of 2023. “STEM’s high operating leverage business model is positioned to be a key beneficiary of the 30% stand-alone storage tax credit in the Inflation Reduction (IRA), in our view.” Across the commercial battery storage sector, UBS anticipates a 34% compounded annual growth rate through 2030 driven by lower storage costs stemming from IRA tax credits and the consumer drive to trim energy expenses. While Stem has yet…
This under-the-radar energy storage stock can get a 60% boost from Inflation Reduction Act, UBS says
