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Investing.com - Mizuho (NYSE:MFG) has raised its price target on Super Micro Computer (NASDAQ:SMCI) to $47.00 from $40.00 while maintaining a Neutral rating on the stock. The company, a prominent player in the Technology Hardware industry, has shown remarkable momentum with a 57% price return over the past six months, according to InvestingPro data.
The firm made no changes to its June quarter revenue and earnings per share estimates of $6.00 billion and $0.45, respectively, which align closely with consensus estimates of $6.00 billion and $0.44.
Mizuho adjusted its fiscal 2026 estimates from $31.4 billion in revenue and $3.19 EPS to $30.0 billion and $2.89 EPS, compared to consensus estimates of $29.9 billion and $2.86 EPS.
The firm also revised its fiscal 2027 projections from $38.6 billion in revenue and $4.42 EPS to $36.2 billion and $3.68 EPS, against consensus estimates of $35.1 billion and $3.67 EPS.
The price target increase reflects a higher multiple of 15.7x fiscal 2026 estimated P/E, up from the previous 12.5x, with Mizuho citing continued strong AI server demand into 2026, robust Tier 2 cloud service provider orders, and strong sovereign demand with Datavolt during Trump’s Middle East tour. For deeper insights into SMCI’s valuation and growth prospects, including 14 additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Super Micro Computer, Inc. has announced the pricing of $2 billion in convertible senior notes due 2030, with an option for initial purchasers to acquire an additional $300 million in notes. The company expects to receive approximately $1.96 billion in net proceeds from this offering, which it plans to use for general corporate purposes, including working capital for growth and business expansion. Supermicro also intends to fund capped call transactions to reduce potential stock dilution and plans to repurchase approximately $200 million worth of its common stock. Additionally, Supermicro’s BigTwin server has received immersion cooling certification from Intel (NASDAQ:INTC), allowing for more efficient cooling in data centers. This certification aligns with guidelines from the Open Compute Project for material compatibility in immersion cooling environments. KeyBanc recently initiated coverage on Super Micro Computer with a Sector Weight rating, citing concerns about competitive pressures in the server market that could impact profitability. The firm noted that while Supermicro’s growth is expected to slow, the company has faced recent accounting and execution challenges.
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