** Shares of server maker Super Micro Computer SMCI.O rise 4.2% to $40.66
** J.P. Morgan upgrades SMCI rating to "neutral" from "underweight" as co has cycled past uncertainty regarding pending SEC filings
** Brokerage raises PT to $45 from $35, representing ~15% upside to stock's last close
** Co is on the cusp of benefiting from ramp in server shipments which are equipped with Nvidia's NVDA.O Blackwell chips; these are already seeing materially higher demand than prior generation - JPM
** "We are cautious relative to gross margins given the increasingly competitive landscape and expect gross margin moderation in FY26 over FY25," brokerage says
** JPM expects SMCI could face challenges related to working capital starting from Q4 fiscal 2025 and continuing into fiscal 2026 to make investments in inventory for supporting revenue growth
** Five of 14 brokerages rate the stock "buy", seven "hold" and two "sell"; their median PT is $54.50 - LSEG
** Up to last close, SMCI up ~28% YTD
(Reporting by Jaspreet Singh in Bengaluru)
((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.