Super Micro Computer stock price target lowered to $45 at JPMorgan

Investing.com - JPMorgan has lowered its price target on Super Micro Computer (NASDAQ:SMCI) to $45.00 from $46.00 while maintaining a Neutral rating following the company’s fourth-quarter fiscal 2025 results. The company, currently valued at $34.17 billion, trades at 29.6 times earnings, which InvestingPro analysis indicates is relatively high compared to its near-term earnings growth potential.

The company missed consensus expectations due to capital constraints and customer indecision, marking another quarter where execution fell short of management targets. Competitive industry pressures have created a challenging environment for Super Micro to balance revenues and gross margins, which InvestingPro data shows stand at 11.27%. Despite these challenges, the company maintains a GREAT financial health score of 3.16, according to comprehensive analysis available in the Pro Research Report, one of 1,400+ detailed company analyses on InvestingPro.

Super Micro provided fiscal year 2026 revenue guidance of at least $33 billion, representing 50% year-over-year growth, which exceeds the consensus estimate of $30 billion but falls below the previously announced $40 billion target that was discontinued in the third quarter of fiscal 2025. This projection builds on the company’s impressive 82.49% revenue growth over the last twelve months, as reported by InvestingPro.

JPMorgan highlighted two positive developments: the launch of Data Center Building Block Solutions (DCBBS), where Super Micro will act as an installation and integration partner, and the company’s progress toward serving six to eight large-scale data center customers in fiscal 2026 compared to four in fiscal 2025.

Despite these positives, JPMorgan has moderated its revenue outlook for fiscal 2026 to $33 billion from $36 billion previously, with updated EPS forecasts of $2.40, $3.05, and $3.60 for fiscal years 2026, 2027, and 2028 respectively, down from prior estimates of $2.70, $3.50, and $4.15.

In other recent news, Super Micro Computer reported its fourth-quarter earnings for fiscal year 2025, which fell short of expectations. The company posted 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, the company is optimistic about resolving previous revenue challenges, as management indicated capital constraints have been addressed, with significant customer orders expected to be recognized in the upcoming quarters. Barclays (LON:BARC) has responded by raising its price target for Super Micro Computer to $45, maintaining an Equalweight rating. Additionally, Raymond (NSE:RYMD) James increased its price target to $53, while keeping an Outperform rating, despite the company’s lower-than-expected earnings guidance for the first quarter of fiscal 2026. These developments highlight the cautious optimism among analysts regarding Super Micro Computer’s growth prospects.

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