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Investing.com -- Super Micro Computer Inc. "made good progress in climbing out of the deep hole it finds itself in," according to Lynx Equity Strategy analysts, following the company’s recent earnings event.
"None may be as relevant as the announcement that the company had succeeded in raising capital from private sources, the implication being savvy private investors appear to be comfortable with company financials, order pipeline and regulatory issues if any," Lynx Equity Strategy noted.
They added that it ought to return confidence to the stock in public markets even ahead of the planned filing of SEC documents.
The firm notes that SMCI management also confirmed the company is on track to complete filing 10-K/10-Q within the filing extension provided by the stock exchange.
The analysts emphasized that a return to regulatory compliance and access to capital markets were “critical elements of our long call three months ago and our previous PT of $45."
"Progress in the traditional metrics of company performance – revenue growth potential, margin profile, manufacturing capacity, competitive position, inventory management and cash management – provides tailwinds to drive the stock to our current PT of $60 set two months ago," the analysts wrote.
Lynx Equity Strategy also said that capacity expansion of manufacturing sites in U.S., Taiwan and Malaysia is mostly over, while capex spending may not be a big factor going forward.
With "renewed access to capital markets, plenty of manufacturing capacity available, leadership in deploying liquid cooled NVDA racks at scale, we think SMCI is poised for upside surprises," added the firm.
Even in the event of a slower-than-expected rollout of Nvidia’s Blackwell chips, Lynx Equity Strategy says the continued deployment of H100 and H200 should be able to support revenue growth at steady margin.
The firm also pointed to CEO statements that "the surprisingly strong $40 billion revenue outlook he provided for FY26 may be a conservative estimate."