Rosenblatt Lowers Super Micro Computer Price Target to $32
Rosenblatt analyst Kevin Cassidy lowered the price target on Super Micro Computer (NASDAQ: SMCI) to $32.00 (from $50.00) while maintaining a Buy rating.
“Controversy around Super Micro’s Board of Director member Yih-Shyan “Wally” Liam and others US Attorney’s indictment alleging export-controls violations put a dark cloud over what would have been an exciting product announcement.
We view Super Micro’s technology capabilities as among the world leaders.
Super Micro was present at the “Arm Everywhere” event with an announced Arm AGI CPU-based server.
Being first to market with leading edge technology is Super Micro’s strength. Controlling alleged rogue employees’ intricate scheme to defraud US government laws is not.
We believe Super Micro’s order backlog is sound and are not expecting changes in estimates due to the US Attorney’s indictments of employees.
Until the investigation has been completed, we expect the SMCI shares will be under pressure. For this, we are lowering our valuation metric from 13x FY27E Non-GAAP EPS to 8x.
This has us reducing our 12-month target price to $32 from $50.
We maintain our Buy rating for SMCI’s technology leadership, order backlog, access to AI supply chain and the market’s insatiable demand for AI compute.”
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