KeyBanc analyst Brandon Nispel reiterated a Sector Weight rating and {REMOVEPT} price target on Super Micro Computer (NASDAQ: SMCI).

The analyst commented: "We remain SW SMCI. We expect solid growth in F3Q quarter with revenue/ gross margin coming inline with guidance. Looking forward, we think revenue guidance is likely raised; however, we're convinced there is more gross margin downside vs. consensus expectations — SMCI 10-K/Q disclosures highlight both the structural headwinds, as well as other costs impacting gross margin, where we think there is little reason to believe margins have troughed. We see more of a bear vs. bull case as likely but view the stock as fairly valued. Detailed estimate changes and rationale can be found in the note."

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Shares of Super Micro Computer closed at $30.35 yesterday.