((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
November 6 – ** Shares of Super Micro Computer SMCI.O fall 24.5% to $20.93 in early Wednesday trading, after the AI server maker reported a drop in sales and filed its annual results are uncertain
** SMCI falls to $20.20 on the session, its lowest level since May 2023 ** The company said last Tuesday that it was still unable to predict when it would file its annual report with the SEC, which was due on August 29
**It forecast Q2 revenue of $5.5 billion to $6.1 billion, below LSEG's $6.86 billion estimate, and preliminary Q1 net sales also missed the consensus
** JP Morgan downgrades SMCI from 'neutral' to 'underweight' and more than halves its estimate from $50 to $23 ** The downgrade is because the company refrained from providing more transparency on the disagreement with previous auditor Ernst & Young, although it reaffirmed that the special committee's investigation had found no evidence of fraud or misconduct, to limited commitments on management changes to address the concerns of the investors regarding financial reporting discipline, lack of certainty on the timeline for appointing a new auditor, among other factors, JPM said in a note
**Barclays reduces its PT from $42 to $25, and Wedbush reduces its PT from $32 to $24
**Out of 14 brokerage firms covering SMCI, the distribution of recommendations is now 3 “buy”, 9 “hold” and 2 “sell”; Median PT of $33.56 down from $66.25 a month ago and down from $93 on August 6 – LSEG
**With Wednesday's move, the stock is down ~37% over the past six sessions and is a far cry from the 2024 intraday high of $122.90 hit in March
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