JPMorgan ups Super Micro target, places on ‘Negative Catalyst Watch’

JPMorgan raised the firm’s price target on Super Micro (SMCI) to $46 from $35 and keeps a Neutral rating on the shares. The firm also placed the shares on “Negative Catalyst Watch.” Share upside related to artificial intelligence demand drivers is likely to be offset by margin pressures from an increasingly competitive landscape, the analyst tells investors in a research note. As such, JPMorgan sees downside to Super Micro’s “premium valuation multiple.”