JPMorgan downgraded Supermicro to Neutral from Overweight with a price target of $500, down from $950. The firm says its downgrade is not led by lower confidence in the company’s ability to regain compliance in relation to regulatory filings or related to any of the tenets of the Hidenburg Research short report. Rather, the downgrade reflects a near-term view that here is a not a clear rationale for new investors stepping into Supermicro shares while uncertainty exists around regaining compliance with regulators that is critical beyond the unchanged business fundamentals, the analyst tells investors in a research note. JPMorgan awaits a follow-up response from Supermicro to ensure that customers do not divert orders, “which could involve aggressive pricing.”
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