SIG analyst Mehdi Hosseini maintains $Super Micro Computer (SMCI.US)$ with a sell rating, and adjusts the target price from $32.5 to $15.
According to TipRanks data, the analyst has a success rate of 56.7% and a total average return of 13.0% 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 adjustment in expectations for Supermicro is attributed to heightened risks to future projections, influenced by the delay in the company's annual filing and the resignation of its auditor. Preliminary results for Q1 and the outlook for Q2 fell short due to revenue not meeting expectations. The lack of reaffirmation of revenue forecasts suggests that Supermicro may be facing some business obstacles.
Supermicro's recent performance has shown a shortfall in the September quarter revenue, with expectations set for a modest sequential decline into the December quarter, according to analyst insights. There's an ongoing uncertainty surrounding the filing of the annual report due to the search for a new auditor. This absence of clarity is anticipated to exert downward pressure on the stock in the near term, coupled with the increasing possibility that Supermicro might not fulfill Nasdaq's listing criteria.
The valuation of Supermicro has significantly diminished following the announcement of the resignation of its auditor, which resulted in the stock losing nearly half its value. The prevailing uncertainties regarding the rationale behind the auditor's departure, Supermicro's capability to submit its annual 10K filing, and the purported Department of Justice investigation are expected to overshadow the company's quarterly financial disclosures and future financial 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.
