Wolfe Research Starts Super Micro Computer at Peerperform

Wolfe Research analyst George Notter initiated coverage on Super Micro Computer (NASDAQ: SMCI) with a Peerperform rating.

“Legal/Regulatory Risks… With the indictment of co-founder of Wally Liaw, the situation has some potential to destabilize the company.

We think this is a low probability, albeit worth considering for investors. Risks here could include resignation of their auditor (BDO USA) and/or a further shakeout among the senior leadership team.

Importantly, no other executives have been named as part of the indictment so far and Super Micro is indicating that the NVIDIA relationship has not been impacted.

Demand doesn’t seem to have been impacted – backlog is at “record highs.” Peer Perform… We’re modeling for CY’28 revenue and EPS of $68.2B and $2.90, respectively.

We estimate the fair value range for the business is $26-31/share, or 9-11x CY’28 EPS. While we like the growth, the risk holds us back on valuation.”

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