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Investing.com - Barclays (LON:BARC) has raised its price target on Super Micro Computer (NASDAQ:SMCI) to $45.00 from $29.00 while maintaining an Equalweight rating on the stock. The company, which has delivered an impressive 69% return over the past six months, currently trades at a P/E ratio of 29.6x. InvestingPro analysis shows 15+ additional key insights about SMCI’s valuation and growth prospects.
The revision comes after Super Micro Computer reported revenue challenges in the June quarter, which the company attributed to capital constraints limiting production scaling and specification changes from a major customer that delayed revenue recognition. Management indicated these capital constraints have been resolved, with large customer orders now scheduled for recognition in the September and December quarters. Despite these challenges, InvestingPro data reveals the company maintains strong financial health with a "GREAT" overall score of 3.16, suggesting robust operational fundamentals.
Despite the improved outlook, Barclays noted that Super Micro’s growth still faces bottlenecks, with fiscal year revenue cadence more back-end loaded given the first-quarter guidance of approximately $6.5 billion at midpoint against full-year 2026 revenue guidance of at least $33 billion. Chip and resource availability constraints, along with customers waiting for GB300s, are contributing to these bottlenecks.
The company introduced its DCBBS (Data Center Building Block Solutions) in the previous quarter and expects to increase customer adoption throughout fiscal 2026. Management highlighted that this solution is attractive not only to cloud players but also to sovereign and enterprise customers, and is expected to be margin accretive over time.
Gross margin missed expectations in the recent quarter, with first-quarter margin guidance weaker than anticipated due to product customer mix and production ramp learning curves. Barclays forecasts 11.3% gross margin for fiscal 2026, representing a roughly flat 10 basis point improvement from fiscal 2025, citing the competitive environment and manufacturing challenges. Current gross margins stand at 11.27%, though analysts expect 48% revenue growth in the current fiscal year. For deeper insights into SMCI’s financial metrics and growth potential, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Super Micro Computer reported its fourth-quarter earnings for fiscal year 2025, which fell short of expectations. The company announced earnings per share of $0.41, missing the anticipated $0.44, and reported revenue of $5.8 billion, below the forecasted $5.96 billion. Despite these results, Raymond (NSE:RYMD) James raised its price target for Super Micro Computer to $53, maintaining an Outperform rating. This decision was made even though the company provided lower-than-expected earnings guidance for the first quarter of fiscal 2026. The earnings miss and guidance led to a 17% drop in the company’s shares during after-hours trading. However, the stock experienced a modest 1.2% increase in aftermarket trading, suggesting that investors are considering the company’s strategic advances in AI and data center solutions. These developments highlight the mixed reactions and ongoing interest in Super Micro Computer’s future performance.
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