Goldman Sachs raised its price target on Super Micro Computer (SMCI, Financials) to $40 from $36, maintaining a Neutral rating as it reassessed the company's valuation based on a 10-times next-twelve-month-plus-one earnings per share multiple.
The price target revision reflects Super Micro's latest regulatory filings, which helped it meet Nasdaq listing requirements. According to its SEC filing, the company postponed its annual and quarterly reports but submitted them without restatements. Super Micro admitted flaws in its internal control systems even after achieving compliance; these would be fixed with corrective actions. Maintaining reasonable debt levels, the firm had a current ratio of 6.38, suggesting a good liquidity situation.
Super Micro fell short of Goldman Sachs' and more general market projections with second-quarter fiscal 2025 earnings per share ranging from $0.58 to $0.60. Under the average forecast of $5.9 billion, the company's third-quarter sales projection fell between $5.0 billion and $6.0 billion. From a previous range of $26.0 billion to $30.0 billion, it also changed its full-year revenue prediction lower to $23.5 billion to $25.0 billion. But it underlined its long-term growth aspirations by reaffirming its fiscal 2026 revenue goal of $40 billion.
The revised view of Goldman Sachs shows ongoing market concern about the value and future trajectory of Super Micro. To fund development goals, the business has issued $700 million in convertible senior notes due 2028, therefore strengthening its financial situation. It is also becoming more visible in the market for artificial intelligence data centers, lately revealing Building Block Solutions driven by NVIDIA's (NVDA, Financials) Blackwell platform.
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