KeyBanc Reiterates Sector Weight Rating on Super Micro Computer (March 19)
KeyBanc analyst Brandon Nispel reiterated a Sector Weight rating on Super Micro Computer (NASDAQ: SMCI).
“We remain SW SMCI. We expect solid growth in F3Q quarter with revenue/ gross margin coming inline with guidance.
Looking forward, we think revenue guidance is likely raised; however, we’re convinced there is more gross margin downside vs. consensus expectations — SMCI 10-K/Q disclosures highlight both the structural headwinds, as well as other costs impacting gross margin, where we think there is little reason to believe margins have troughed.
We see more of a bear vs. bull case as likely but view the stock as fairly valued. Detailed estimate changes and rationale can be found in the note.”
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