Super Micro Computer, Inc (NASDAQ:SMCI) stock continued its rally Monday since it raised its earnings guidance last week.
Last Thursday, the company estimated that second-quarter net sales would be between $3.6 billion and $3.65 billion, versus the prior guidance of between $2.7 billion and $2.9 billion.
The adjusted diluted net income per common share will likely be between $5.40 and $5.55, versus the previous forecast of $4.40 to $4.88.
However, Wedbush analyst Matt Bryson said the company provided minimal color on the release, only signaling strong market demand for its products as driving the top-line upside.
The analyst reiterated a Neutral rating on Super Micro Computer with a price target of $250.
SMCI’s valuation, as per the analyst, implied a PE of ~13X applied to FY25 estimates (after netting out SMCI’s debt/cash). While this multiple is above SMCI’s historical valuation range (which averaged ~10X over the ...