J.P. Morgan analyst Samik Chatterjee downgrades $Super Micro Computer (SMCI.US)$ to a sell rating, and adjusts the target price from $50 to $23.
According to TipRanks data, the analyst has a success rate of 61.5% and a total average return of 12.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Super Micro Computer (SMCI.US)$'s main analysts recently are as follows:
The decrease in the projected value for Supermicro is attributable to heightened estimate risks following the company's delay in annual filings and the resignation of their auditor. The company's preliminary results for Q1 and the outlook for Q2 fell short, primarily due to revenue not meeting expectations. Along with not reaffirming revenue guidance, it seems that Supermicro might be facing some operational difficulties.
Supermicro's recent performance revealed a shortfall in September quarter revenue, and projections for the December quarter suggest a slight sequential downturn. The delay in filing the annual report, due to the search for a new auditor, is anticipated to exert near-term pressure on the stock, along with the increasing possibility of failing to comply with Nasdaq's listing criteria.
Following Supermicro's announcement of the resignation of its auditor, the company's stock value has nearly halved. Concerns regarding the rationale behind the auditor's decision, the company's capability to submit its annual report, and a purported investigation by the Department of Justice are expected to overshadow the significance of the company's quarterly financial results and forecasts.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
