On Wednesday, Super Micro Computer (NASDAQ:SMCI) experienced a significant share price drop following the announcement of a delay in the release of its 10K report. Rosenblatt has reiterated a Buy rating and a $1,300.00 price target on the company's stock, despite the over 25% intraday decline.
The delay in the 10K, which was due the following day, is attributed to the company's need for additional time to finalize the report and assess the effectiveness of internal controls.
The stock's sharp decline coincides with concerns raised by Hindenburg Research, although Rosenblatt's analyst emphasized that the delay in the 10K filing is not connected to the Hindenburg report, as the company was not aware of the publication.
Additionally, the delay is not related to NVIDIA (NASDAQ:NVDA)'s financial results, which were also set to be released. The firm expects the 10K to be available within a couple of weeks.
Despite the current circumstances, Rosenblatt's stance on Super Micro remains positive. The analyst highlighted that the business is robust and healthy, with no alterations to the company's financial outcomes. Management has expressed concern over new allegations regarding shipments to Russia, clarifying that Super Micro does not engage in shipping to that country and would disclose any such activity by a partner.
The analyst concluded that while a 10K delay is generally perceived negatively, the market's reaction, particularly the 25% stock price correction, might be excessive. This assessment is based on the belief that the issues raised by Hindenburg Research are either outdated or inaccurate.
In other recent news, Super Micro Computer has seen a flurry of activity. CFRA downgraded Super Micro's shares from Buy to Hold and lowered the price target to $454 due to allegations by Hindenburg Research regarding accounting manipulation.
Wells Fargo also reduced its price target for Super Micro to $375, maintaining an Equal Weight rating on the company's shares. Despite these challenges, Super Micro reported a record-breaking fiscal year with revenues of $5.31 billion in the fourth quarter of 2024 and full-year revenue of $14.94 billion.
The company has delayed its annual report filing, citing the need for additional time to assess internal controls over its financial reporting. This decision follows the allegations from Hindenburg Research. In addition, Super Micro has appointed Susie Giordano, who brings over 25 years of experience, to its board of directors.
Despite the concerns, Super Micro has forecasted a revenue of between $26 billion and $30 billion for fiscal year 2025, indicating over 70% year-over-year growth. These are the recent developments that investors should be aware of.
InvestingPro Insights
In light of the recent volatility in Super Micro Computer's (NASDAQ:SMCI) share price, investors may benefit from additional insights. According to InvestingPro data, Super Micro Computer boasts a strong revenue growth, with a remarkable 109.77% increase in the last twelve months as of Q4 2024, and an even higher quarterly revenue growth of 142.95% in Q4 2024. The company's market capitalization stands at a robust $25.09 billion, reflecting its significant presence in the industry.
InvestingPro Tips reveal that analysts remain optimistic about Super Micro's future performance, as evidenced by six analysts revising their earnings projections upward for the upcoming period. Additionally, the company is trading at a low P/E ratio of 19.69 relative to its near-term earnings growth, which could indicate that the stock is undervalued at its current price, especially considering the company's strong revenue growth figures.
For investors looking for more in-depth analysis, there are 17 additional InvestingPro Tips available, offering a comprehensive overview of Super Micro's financial health and market position. These tips, along with real-time metrics, can be found on the InvestingPro platform and could provide valuable guidance in these turbulent times for the company.
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