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Investing.com - Rosenblatt has lowered its price target on Super Micro Computer (NASDAQ:SMCI) stock to $55.00 from $60.00 while maintaining a Buy rating on Wednesday. The stock, currently trading at $47.40, has taken a significant hit with a 10% decline over the past week, according to InvestingPro data.
The price target reduction follows Super Micro’s September quarter results, which aligned with the company’s pre-announcement. Despite the September quarter revenue shortfall, the company provided strong upside guidance for December quarter revenue. This aligns with InvestingPro data showing analysts anticipate 47% sales growth for the current fiscal year, building on the company’s impressive 46.6% revenue growth over the past twelve months.
Rosenblatt noted that costs associated with rapidly scaling new product production are pressuring gross margins and resulting in earnings guidance that falls "well below consensus," which "will disappoint investors."
The firm expects these cost pressures to ease over the next two quarters as the GB300 platform transitions to mainstream production.
Despite the near-term margin challenges, Rosenblatt maintained its Buy rating on Super Micro Computer stock, suggesting confidence in the company’s longer-term prospects.
In other recent news, Super Micro Computer reported its fiscal first-quarter 2026 earnings, revealing a significant shortfall in both earnings per share (EPS) and revenue compared to analyst forecasts. The company’s EPS was $0.35, below the expected $0.46, while revenue reached $5 billion, missing the forecasted $6.46 billion. Despite raising its full-year 2026 revenue outlook, the company provided weak second-quarter EPS guidance that fell significantly below consensus expectations. In response to these developments, several financial firms have adjusted their price targets for Super Micro Computer. Needham lowered its price target to $51, maintaining a Buy rating, while Raymond James adjusted its target to $50, keeping an Outperform rating. Mizuho set its price target at $45, maintaining a Neutral rating, after the company’s September quarter revenue of $5.02 billion fell short of the $6.09 billion consensus estimate. BofA Securities reduced its price target to $34, citing concerns over declining gross margins, projected to drop by 300 basis points in the December quarter due to increased engineering and production costs. These recent developments have led to a cautious outlook from analysts regarding Super Micro Computer’s financial performance.
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