Needham & Company Reiterates Buy on Super Micro Computer (SMCI) Following 4Q
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Needham & Company reiterated a Buy rating and $25.00 price target on Super Micro Computer (NASDAQ: SMCI) following the company's 4Q earnings report. SMCI reported revenue of $524.3M and $0.20 non-GAAP EPS, essentially in-line with the July 18th pre-announcement. Server Systems revenue of $343M was down 3% y/y. Server ASP of $41K was flat y/y, with 84K units shipped.
Analyst Richard Kugele commented, "Amid the internal SAP systems upgrade and implementation of a new global tax strategy, sales execution/responsiveness suffered in F4Q. This allowed for competition (especially in Internet Data Center) to price aggressively and win a couple project deals that SMCI had anticipated. Issues of execution are far easier to repair than those of demand, and here we have the former and not the latter. We believe SMCI has line of sight to a recovery on all of these issues (largely execution rather than market). With our revised model already incorporating the new guidance outlined on the call, we reiterate our Buy and $25 PT."
Shares of Super Micro Computer closed at $20.42 yesterday.
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