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Investing.com - Raymond (NSE:RYMD) James raised its price target on Super Micro Computer (NASDAQ:SMCI) to $53.00 from $41.00 on Wednesday, while maintaining an Outperform rating on the stock. The company, currently valued at $34.17 billion, has seen its stock trade between $15 and $93 in analyst price targets. According to InvestingPro analysis, the stock appears slightly undervalued at its current price of $57.26.
The price target increase comes despite Super Micro Computer missing its fiscal fourth-quarter 2025 expectations and providing lower-than-expected earnings guidance for the first quarter of fiscal 2026, which caused shares to drop approximately 17% in after-hours trading.
Raymond James noted that margin weakness will be a key concern for investors, but emphasized that Super Micro Computer’s revenue growth outlook remains strong, with management forecasting 50% growth acceleration in fiscal year 2026.
The investment firm believes that an improving customer and product mix will lead to margin improvement for Super Micro Computer in the future, despite current profitability challenges.
Raymond James also cited improved availability of NVIDIA (NASDAQ:NVDA)’s Blackwell GPUs as a factor that could help Super Micro Computer achieve strong sales growth, with the new price target reflecting multiple expansion of the comparison group.
In other recent news, Super Micro Computer Inc. reported its fourth-quarter earnings for fiscal year 2025, which fell short of expectations. The company announced earnings per share (EPS) of $0.41, missing the forecasted $0.44. Additionally, the revenue reported was $5.8 billion, below the anticipated $5.96 billion. Despite these financial misses, the company’s stock experienced a modest aftermarket increase. Investors are considering Super Micro Computer’s strategic advancements in AI and data center solutions as part of their evaluation. The company’s performance is being closely watched by analysts, who are weighing these factors in their assessments.
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