$SUPER MICRO COMPUTER INC(SMCI)$ The gains made today certainly suggest that Super Micro could be making a comeback. However, the stock has plunged around 55% since hitting a high of $1,229 per share. Some grew concerned about valuation issues, which is not that big of a surprise once a stock quadruples in less than three months.
But it also posted a record revenue figure of $5.31 billion in its fourth quarter, which was a 143% increase against the same time last year. This makes it easy to wonder if it can continue growing at such a high rate and justify a return to its record high. The numbers certainly support assertions that Super Micro is producing and making money for shareholders regardless of what Hindenburg Research might suggest.
Is SMCI a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SMCI stock based on five Buys, five Holds, and one Sell assigned in the past three months. After a 60.55% rally in its share price over the past year, the average SMCI price target of $978.50 per share implies 117.43% upside potential.
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