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:
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.
