01:35 PM EDT, 05/01/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target to $1,065 from $1,191, on a P/E of 30x our CY 25 EPS view of $35.55, above its three-year historical average. We lift our FY 24 (Jun.) EPS view to $23.79 from $21.77 and FY 25's to $34.19 from $31.44. SMCI posted Q3 EPS of $6.65 vs. $1.63, a $1.08 consensus beat. Sales grew 200% with Server & Storage systems up 218% and Subsystems & Accessories up 27%, partially offset by some component supply constraints. Growth was driven by AI GPU platforms (+50% of sales), and we expect momentum to continue (+60% of sales in Q4) with supply chain improvement and new air/liquid cooling design wins. Enterprise sales surged 190% on SMCI's leading position, while OEM grew 222%. We are encouraged by SMCI's track of 2,000 DLC racks/month by the end of June, enabling increased volume capabilities, and we see opportunities across chip vendors beyond just NVDA. Demand signals remain strong with capacity adds providing a powerful catalyst as SMCI deepens its exposure across the generative AI compute cycle.