Wedbush keeps Underperform on Super Micro despite positive Q4 preannouncement

Wedbush analyst Matt Bryson notes that Supermicro updated its Q4 outlook, with revenues now expected to come in at $2.15B-$2.18B, vs. the original guidance range of $1.7B-$1.9B and consensus at $1.8B. EPS is now expected to be about $3.35-$3.45, compared to the previously provided range of $2.21-$2.71. As part of the release, management signaled that order rates and design activity remain at record levels driving rapid backlog growth, the firm adds. While Wedbush doesn’t see any near-term risk to Supermicro results, the firm is retaining its more cautious stance and Underperform rating on the name with a price target of $65.