Movement Alert|SUPER MICRO COMPUTER INC Rises 5.15% in Regular Trading, Multiple Firms Raise Target Prices Following Near-Doubled Margin Guidance

Market Focus07-23 22:09

On July 23, SUPER MICRO COMPUTER INC rose 5.15% in regular trading, trading at approximately $32.00 per share with turnover of $6.14 billion, extending the prior session's 25%-plus surge.

The continued momentum follows the company's preliminary business update, which raised fiscal Q4 gross margin guidance from 8.2%-8.4% to 15%-17%, nearly double the prior forecast, driven by a favorable customer and product mix. The company also disclosed new orders exceeding $60 billion for the quarter, pushing backlog to a record high, with deliveries expected over the coming quarters.

Multiple institutions subsequently adjusted their price targets. Needham raised its target to $46 from $40 while maintaining a Buy rating, and Barclays lifted its target to $38 from $34. Mizuho adjusted its target to $34 from $44 while maintaining a Neutral rating. Revenue for the quarter is expected near the low end of the $11 billion to $12.5 billion guidance range. The company is scheduled to hold its earnings call on August 11.

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