Super Micro Computer Growth Plans Look Reasonable

Dow Jones00:09

1203 ET [Dow Jones]--Super Micro Computer has several things going for it that could make its share more attractive going forward, Wedbush analyst Matt Bryson says. He has a neutral rating on the stock for now, as he would like to see the company emerge from the Justice Department case against it tied to Chinese GPU server shipments, with new controls to minimize the likelihood of future transgressions. But the company has growth expectations that look reasonable, the analyst says. Its guidance for gross margins to moderate back toward 10% looks like an achievable bar, he says. And the company's valuation has also moderated back toward levels typical of server vendors, the analyst says. Shares rise 15% to $36.33.

 

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