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.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.