On Monday, Lynx Equity revised its stock price target for Super Micro Computer (NASDAQ:SMCI), raising it to $60.00 from the previous $45.00. The adjustment follows the company's recent announcement that the NASDAQ has granted Super Micro an extension to file the necessary financial documents. Super Micro is now required to submit its 10-K and 10-Q reports by February 25, 2025, and will continue to be listed on the exchange during this period.
The company's ability to remain listed has been under scrutiny following a delay in its 10-K filing disclosed three months ago, which had led to speculation about a potential delisting. However, Lynx Equity had previously estimated that the likelihood of delisting was not as high as many feared, citing Super Micro's significant role in the AI infrastructure space.
The firm suggested that the market's anticipation of share gains for competitors like Dell (NYSE:DELL) in this area might not materialize as expected.
Super Micro's stock has gained momentum over the past few weeks, buoyed by positive news. The firm's recent 8-K filing on Friday, which indicated the NASDAQ's decision to grant an extension, pushed the stock price above Lynx Equity's initial price target in after-hours trading. The brokerage believes that this development will likely attract investors back to the stock and may lead to some brokerages reinstating coverage.
While acknowledging that there are unresolved legal issues related to the delay in filing, Lynx Equity indicates that for the next two-plus months, until the filing deadline, market volatility related to this event is expected to subside. The focus is anticipated to shift towards the company's fundamentals, a factor that has contributed to the decision to increase the price target.
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