Analyst Maintains Buy Rating on Super Micro Computer, Lowers Price Target
May 6, 2023
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SUPER ($NASDAQ:SMCI): SMC is a leading provider of high-performance server solutions for data centers and cloud computing. The revision by Baruah was based on the fact that the company had failed to meet analysts’ expectations in the last quarter. The report cited lower-than-expected revenues and weak margins as the primary factors behind the revision.
In addition, the revised price target was attributed to a lower projected earnings potential in the coming quarters. In spite of this revision, Baruah maintained a Buy rating on SMC. He noted that the company had a strong balance sheet and was well-positioned for future growth. He also highlighted that SMC had a strong track record of innovation, which could be beneficial for investors looking for long-term growth opportunities. Overall, the analyst believes that SMC is still a good investment option and is confident that it can bounce back with better performance in the coming quarters. Therefore, those who are interested in investing in SMC may want to consider the revised price target and keep an eye on any potential future updates that may affect the company’s stock price.
Share Price
Analyst Maintains Buy Rating on Super Micro Computer, Lowers Price Target. On Thursday, stock of Super Micro Computer opened at $132.8 and closed at $136.4, up by 1.8% from prior closing price of 134.0. The lower price target is indicative of the stock’s potential upside in the future and is expected to provide support to the current share price. Despite the lower price target, analysts remain optimistic about the company’s prospects going forward and maintain their buy rating on the stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SMCI. More…
| Total Revenues | Net Income | Net Margin |
| 6.57k | 587.25 | 8.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SMCI. More…
| Operations | Investing | Financing |
| 647.78 | -39.64 | -490.79 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SMCI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.19k | 1.42k | 33.53 |
Key Ratios Snapshot
Some of the financial key ratios for SMCI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.9% | 87.4% | 10.7% |
| FCF Margin | ROE | ROA |
| 9.7% | 24.6% | 13.8% |
Analysis
As a part of our analysis, GoodWhale examined the financials of SUPER MICRO COMPUTER. Using our Star Chart, we found that SUPER MICRO COMPUTER was strong in asset, growth, and medium in profitability, but weak in dividend. Based on these findings, we classified SUPER MICRO COMPUTER as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. This type of company would be of interest to many investors, including those looking for companies exhibiting good health. Our Health Score for SUPER MICRO COMPUTER was 7/10, meaning it is in good condition and could pay off its debts and fund future operations. This would make it an attractive investment opportunity for those seeking stable and long-term gains. More…
Peers
In the computer technology industry, there is intense competition between Super Micro Computer Inc and its competitors NetApp Inc, Quantum Corp, and Peraso Inc. All four companies are constantly innovating and introducing new products and services in an attempt to gain market share. This competition benefits consumers as it results in lower prices and better products and services.
– NetApp Inc ($NASDAQ:NTAP)
NetApp Inc is a American computer storage and data management company headquartered in Sunnyvale, California. It was founded in 1992 by Dave Hitz, Michael Malcolm, and James Lau. The company provides software, systems, and services to manage and store data. NetApp’s product portfolio includes data management, ONTAP software, all-flash storage, converged systems, cloud data services, and more. As of 2022, NetApp has a market cap of 13.54B and a ROE of 100.42%.
– Quantum Corp ($NASDAQ:QMCO)
Quantum Corporation is a data storage company that provides solutions for capturing, storing, managing, and protecting digital information. The company has a market cap of 119.09M as of 2022 and a return on equity of 16.28%. Quantum’s products are used in a variety of industries, including media and entertainment, healthcare, government, and education.
– Peraso Inc ($NASDAQ:PRSO)
Peraso Inc is a Canadian technology company that develops and manufactures advanced wireless products using 60 GHz millimeter wave technology. The company has a market cap of 32.31M as of 2022 and a Return on Equity of -24.88%. The company’s products are used in a variety of applications including 4G/5G backhaul, fixed wireless access, video streaming and virtual reality.
Summary
Analyst Ananda Baruah from Loop Capital recently provided an investing analysis of Super Micro Computer. On May 3, 2023, Baruah maintained a Buy rating but lowered the price target. Baruah’s analysis suggested that despite the downward pressure on the company’s stock price, the company’s fundamentals remain strong and the prospective long-term returns remain attractive. Investors should consider Super Micro Computer as a potential opportunity to diversify their portfolios and to capitalize on its position as a leader in the computer industry.
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