While Super Micro Computer’s (NASDAQ: SMCI) latest earnings report proved impressive enough to trigger an initial 11% rally, Wall Street analysts proved significantly harder to impress than investors.
Specifically, out of the five institutional experts who issued a revision in the wake of the Tuesday evening filing, only one rated SMCI stock as a ‘Buy’, while one issued a ‘Sell’ recommendation, and three others proved ‘Neutral’.
Raymond James analyst Simon Leopold was the singular bull and, along with the positive rating, he upgraded his Supermicro equity 12-month price target from $48 to $65.
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Bank of America’s (NYSE: BAC) Ruplu Bhattacharya also upgraded the forecast from $38 to $39, despite issuing a ‘Sell’ recommendation.
Wedbush, Keybanc, and Barclays, meanwhile, all rated Super Micro Computer stock as ‘Neutral’ and provided price estimates in the range between $39 and $40.
Wall Street sets SMCI stock price target for 2027
Notably, despite Supermicro disclosing a double beat with revenue at $19.9 billion instead of the expected $16.3 billion, and earnings-per-share (EPS) at $1.81 rather than $1.62, the majority of the latest price targets were below the three-month average.
Indeed, Wall Street as a whole is expecting SMCI stock to rise 35.52% to $42.54 within the next 12 months, per the data Finbold retrieved from TipRanks on Wednesday, November 4.
The overall rating, on the other hand, is only slightly more optimistic than the most recent five revisions. SMCI shares are considered a ‘Hold’ based on all of the notes provided in the last three months, and boast four ‘Buy’, two ‘Sell’, and ten ‘Neutral’ recommendations.
Supermicro stock price performance after earnings
Finally, the initial reaction to the earnings proved generally positive, and the overnight 11% rally from the latest closing price of $31.39 to the peak at approximately $34.94 appeared to promise both a strong reversal from the recent downtrend and a return to highs not seen since late October.
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Wednesday morning, however, erased most of the gains and, at press time on November 4, SMCI stock is trading at $31.56, only 0.54% above the Tuesday close.
Featured image via Shutterstock
