Allegations of accounting manipulations and export control violations lead to Super Micro Computer stock downgrade

From Nasdaq: 2024-09-11 14:43:00

Super Micro Computer, Inc. (SMCI) faces allegations of accounting manipulations and export control violations by short-seller Hindenburg Research. Concerns over regulatory issues, management, and lost client support weigh on the stock, leading to a delay in filing its annual report with the SEC. JPMorgan’s downgrade and price target cut add to the uncertainty.

Super Micro Computer, a leader in high-performance server solutions, saw a sharp drop in stock price after Q4 earnings missed expectations. Despite robust sales growth, declining profitability and high debt levels raise concerns. A 10-for-1 stock split and optimistic projections for fiscal 2025 and 2026 suggest potential for rebound.

Analysts initially defended Super Micro against Hindenburg’s claims, but have since downgraded the stock and revised price targets lower. Despite cautious optimism, the consensus remains a “Moderate Buy,” with a mean price target of $819.07 suggesting significant upside potential. Investor confidence remains shaky amidst regulatory concerns and competitive pressures.



Read more at Nasdaq: What’s Behind the Latest Super Micro Computer Stock Downgrade?