Analysts revise SMCI stock price target after annual report delay

After Super Micro Computer Inc (NASDAQ: SMCI) revealed it would not file its annual report on the United States Securities and Exchange Commission (SEC) Form 10-K for the fiscal year ending June 30 on time and expected to submit a late filing notification, analysts have started revising their SMCI stock price targets.

Indeed, SMCI said it was “unable to file its Annual Report within the prescribed time period without unreasonable effort or expense” and that its management needed additional time “to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024,” in an August 28 statement.

SMCI stock forecast

Amid these unfavorable announcements and other problems, like rumors of accounting manipulation and various governance issues, Wall Street analysts have begun updating their SMCI stock price target, with the average predicted price standing at $978.50, up 118.02% from its price at press time.

Among analysts revising their SMCI stock price target is the team from Wells Fargo (NYSE: WFC), which has lowered its SMCI stock prediction from $650 to $375 and maintained the ‘equal weight’ rating on the shares as a cherry on top following the scathing report by Hindenburg Research.

As a reminder, the short-seller alleged in its report that SMCI has dabbled into “accounting manipulation, sibling self-dealing, and sanction evasion,” after which the SMCI stock price began to drop and continued to decline further after SMCI announced the delay in filing its annual report.

According to Wells Fargo analyst Aaron Rakers, the price target reduction relates to “uncertainty/concern over revenue recognition, and SMCI’s history,” but also addressing his brief conversation with SMCI CFO David Weigand, the company’s finance executive, who had emphasized three key points: 

“1. This is about internal controls – we think it is hard to narrow this down as internal controls could be considered far-encompassing. 2. SMCI has not made any updates to results (F4Q24 or FY24) nor forward guidance expectations, 3. SMCI emphasized that it just finished FY24 w/ 110% y/y growth and provided a strong FY25 guide @ $26-$30B (>70% y/y growth).”

At the same time, Rosenblatt’s Hans Mosesmann has provided a more optimistic view, admitting that the delay did not look good but also stressing it had nothing to do with Hindenburg’s report (which the company did not know about) and arguing that the market’s reaction was “over the top.”

“The business remains strong and healthy, and there have been no changes to the company’s financial results,” says this 5-star analyst. “Management is concerned about new allegations of shipments to Russia as Supermicro does not ship to that country and would report it if a partner had done so.”

SMCI stock price analysis

For the time being, the price of SMCI stock currently stands at $448.82, which suggests a 1.20% increase on the daily chart, a decline of 26.52% across the past week, adding up to the loss of 32.64% over the month while making an accumulated advance of 57.23% year-to-date (YTD), as per data on August 30.

All things considered, Wells Fargo’s reduction of the SMCI stock price target is a brutal blow, but other analysts remain optimistic, still rating the shares as a ‘moderate buy.’ That said, doing one’s own research, including keeping up with SMCI news and other relevant developments like SMCI earnings date, is critical when investing.

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