Loop Capital analyst Ananda Baruah maintains $Super Micro Computer (SMCI.US)$ with a buy rating, and adjusts the target price from $100 to $35.
According to TipRanks data, the analyst has a success rate of 52.2% and a total average return of 10.4% 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 revision in the valuation reflects heightened risks to future financial projections due to the interruption caused by Supermicro's postponed annual report and the departure of its auditor. The company's preliminary results for Q1 and the forecast for Q2 have fallen short, attributed to revenues not meeting expectations. Furthermore, without a reaffirmation of revenue guidance, it seems that Supermicro might be encountering some business difficulties.
Supermicro's recent performance showed a shortfall in September quarter revenue, and the guidance for the December quarter suggests a modest sequential decline. There's also an ongoing issue with the company not yet specifying a timeline for filing its annual report as it searches for a new auditor. This absence of transparency is likely to exert near-term pressure on the stock, along with the increasing danger of failing to comply with Nasdaq's listing criteria.
Following the disclosure that its auditor resigned, Supermicro's stock value has nearly halved. Analysts suggest that the focus will likely shift to the rationale behind the auditor's decision, the company's capability to file its annual report, and the alleged investigation by the Department of Justice, rather than the company's quarterly financial results and projections.
Note:
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