Investing.com -- Loop Capital Markets raised its price target on Super Micro Computer (NASDAQ:SMCI) to $40 from $35 per share in a note Thursday, reiterating its Buy rating on the stock.
"SMCI remains an important company in an important space with both special situation catalysts," Loop Capital stated in its research note.
The firm cited several factors supporting this bullish outlook, including the ramp-up of the GB200 and GB300 server platforms heading into the summer and the strong growth plans of its key customers.
While acknowledging potential near-term headwinds, Loop Capital believes SMCI is well-positioned for long-term success.
"We anticipate SMCI could experience a clunky 1HCY2025," the note stated, "at least until May / June when key Tier 2 customers begin getting GB200 allocation."
“That is to say, while we have conviction in our $40 PT, there is some possibility, given Blackwell ramp and Tier 2 purchasing patterns) that getting there isn’t a straight line,” they added.
The firm also highlighted the increasing demand for liquid cooling solutions, a key area of strength for SMCI, as a significant growth driver. Additionally, Loop Capital emphasized the potential for increased revenue and profitability from the more customizable GB300 platform.
Despite the near-term challenges, Loop Capital remains confident in SMCI's long-term prospects. "We believe SMCI could reach $8B+ in quarterly revenue by the Dec Q," the note stated, "if not the Sep Q."