Wedbush: Hidden problems may lie behind Super Micro Computer (SMCI.US) and the target price is lowered to USD32

Wedbush published a research note stating that Super Micro Computer (SMCI.US) is facing more and more problems in the future, including whether it can avoid delisting from Nasdaq in the next few weeks.Wedbush analyst Matt Bryson and Antoine Legault said in a Monday investor report: "The lack of auditors and the decision of EY to resign as the company's auditor, saying it cannot "rely on management and audit committee representations", has undoubtedly made it a tough battle for Super Micro to continue its listing."Wedbush cut its target price to $32 from $62, but maintained a "neutral" rating. In the past six months, Super Micro Computer has plunged nearly 70%.Wedbush also wants to know if there are major financial issues related to management behavior. Super Micro Computer said in a filing to the U.S. Securities and Exchange Commission on October 24 that "any issues raised by EY or matters under consideration by the special committee will not result in a restatement of the financial statements for the fiscal year 2024 (ended June 30, 2024) or prior years." This indicates that there are no financial issues, but more and more signs indicate that there may be bigger issues.Finally, can Super Micro Computer maintain its current sales guidance in this turmoil?Bryson added: "We have seen some signs that Super Micro's liquid cooling demand is not as strong as the company expected before a series of recent problems emerged."In fact, there have been reports that Super Micro's main customer Nvidia (NVDA.US) is redirecting orders previously placed with Super Micro to other suppliers to curb the chaos in the artificial intelligence server industry.Super Micro Computer plans to release a business update for its fiscal 2025 first quarter on November 5, but will not release a full financial report.