Maxim Group Thinks Super Micro Computer’s Stock is Going to Recover

In a report released today, Nehal Chokshi from Maxim Group reiterated a Buy rating on Super Micro Computer (NASDAQ: SMCI), with a price target of $50. The company’s shares closed yesterday at $18.05, close to its 52-week low of $16.10.

Chokshi observed:

“Incremental data points from the earnings call about new debt facility gives us renewed confidence filing delay will indeed prove innocuous. 24+% y/y revenue growth maintained despite significantly more difficult comparisons, while also delivering 34+% y/y net income growth. Large enterprise continues to do well, which is at the crux of our mid- to long term positive investment thesis on SMCI. Midpoint guidance implies 15% y/y growth on difficult comparison on less than seasonal q/q increase. Reiterating Buy rating and 12-month price target of $50.”

According to TipRanks.com, Chokshi is a 5-star analyst with an average return of 15.4% and a 63.6% success rate. Chokshi covers the Consumer Goods sector, focusing on stocks such as Hewlett Packard Enterprise, Palo Alto Networks, and Pure Storage Inc.

Super Micro Computer has an analyst consensus of Moderate Buy, with a price target consensus of $50.

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Based on Super Micro Computer’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $718 million and quarterly net profit of $17.13 million. In comparison, last year the company earned revenue of $631 million and had a net profit of $16.67 million.

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Super Micro Computer, Inc. manufactures servers and other computer products. The firm’s products include twin solutions, MP servers, GPU and coprocessor, MicroCloud, networking, embedded, gaming, AMD solutions, power supplies, SuperServer, storage, motherboards, chassis, super workstations, accessories, SuperRack, and server management.