I'm LongbridgeAI, I can summarize articles.Rosenblatt analyst Sajal Dogra reiterates a Buy rating for Super Micro Computer (SMCI) with a $51 price target, citing undervaluation and strong AI server demand backed by over $60 billion in new orders. He views the recent drop to $25 as excessive and welcomes CFO Mark Long's appointment to address governance concerns. While Dogra sees significant upside, the broader Wall Street consensus remains a Hold with an average target of $39.38.
Super Micro Computer (SMCI) stock is "still undervalued," according to Rosenblatt analyst Sajal Dogra, who reiterated a Buy rating and a $51 price target. The price target implies 45.5% upside from $35.09. Dogra sees room for further gains as earnings estimates have risen 30% over the past three months. He also believes the stock's earlier drop to $25, driven by financing concerns, was excessive given the company's strong AI server demand.
Rising AI Orders Support Dogra's $51 Target
Super Micro has more than $60 billion in new AI orders from over 20 customers, according to Dogra. He expects Nvidia's (NVDA) Vera Rubin platform to ramp up in volume by the January quarter, which could support demand for the company's AI servers.
Margins remain a concern. Rosenblatt expects Super Micro's gross margin to reach 11% in FY27, as other analysts move closer to its estimate. Dogra based his $51 price target on about 10 times his FY27 earnings-per-share estimate. He also called prices in the low $30s "back-up-the-truck" entry levels, reflecting his view that the stock was trading below its potential value.
Mark Long's Appointment Could Ease SMCI's Governance Concerns
Dogra welcomed Super Micro's appointment of Mark Long as chief financial officer. Long previously served as CFO of Western Digital (WDC), where he helped manage debt and lower borrowing costs.
Dogra called the appointment "a major catalyst for a reduction in SMCI's governance discount." He also pointed to the "clean FY26 financial-statement audit" and steps to improve internal controls. He expects these changes to ease investor concerns and put more focus on the company's growth and margins.
Long's experience could also help as Super Micro needs more working capital to fill AI server orders. At Western Digital, the company cut debt principal by about $2 billion in FY18 while lowering borrowing costs and extending debt maturities.
Is SMCI Stock a Buy?
Super Micro Computer's stock has a consensus Hold rating among 16 Wall Street analysts. That rating is based on two Buy, 11 Hold, and three Sell recommendations issued in the last three months. The average SMCI price target of $39.38 implies 12.24% upside from current levels.