Quinn Bolton, an analyst from Needham, maintained the Buy rating on Super Micro Computer. The associated price target was raised to $60.00.
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Quinn Bolton has given his Buy rating due to a combination of factors influencing Super Micro Computer’s current and future performance. Despite the company’s recent revenue and gross margin figures falling short of market expectations, Bolton sees potential for improvement. The shortfall was primarily due to capital access issues, which have been addressed following the filing of the company’s 10-K, and specification changes from a significant new customer that delayed revenue recognition.
Looking ahead, Bolton anticipates that the company’s margins will recover as it scales up its DCBBS solutions and explores new growth opportunities. He is optimistic about the company’s future prospects, as reflected in the increased price target of $60, which is based on a projected FY27 non-GAAP EPS of $3.70. This forward-looking perspective underpins his Buy recommendation, suggesting confidence in the company’s strategic direction and ability to overcome current challenges.
In another report released today, Raymond James also maintained a Buy rating on the stock with a $53.00 price target.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SMCI in relation to earlier this year.