Barclays Lowers Super Micro Computer Price Target to $38
Barclays analyst Tim Long lowered the price target on Super Micro Computer (NASDAQ: SMCI) to $38.00 (from $43.00) while maintaining an Equalweight rating.
“SMCI Dec-Q results beat on both the top and bottom line with management flexing operating leverage despite the Q/Q GM deterioration.
Revenue came in at $12.7Bn, up 153% y/y, beating our estimate by >$2Bn. GM of 6.4% was slightly below our 6.5% estimate.
Management guided to FQ3 revenue to be at least $12.3Bn with FY26 top-line guidance to now at least $40Bn. Give the FQ3 revenue guidance, the raised FY guidance implies a FQ4 Q/Q step down in growth.
However, we view this as conservatism, and expect the business to maintain momentum through 2H. GM was guided to 30bps Q/Q improvement next Q, though still below 7%.
DCBBS is expected to rise in the profit mix, though we expect large customers and competitive wins to pressure GM expansion.”
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