System News
Nexenta News
30 Nov 2016
#58628
DA Davidson Upgrades Super Micro Computer Despite Tough Comps
Benzinga, November 30th, 2016

D.A. Davidson upgraded Super Micro Computer, Inc. to Buy from Neutral on margin benefits from success of server sales outside the Internet Data Center vertical, while the company is set to deliver a seasonally strong quarter in December.

The bullish thesis is also based on growth in storage business and a pending server upgrade cycle in mid-2017 in the form of Sky Lake.

The upgrade comes despite SMCI faces a difficult year-over-year comparison for December, as the December 2015 quarter included a large deployment for IBM/Softlayer, which accounted for 15 percent revenue in the quarter.

'With fast-growing storage vendors such as Nutanix Inc, Nimble Storage Inc, and Nexenta building software on SMCI hardware, we believe the storage vertical should continue to drive top line growth,' analyst Mark Kelleher wrote in a note.
(Get More Information . .)

See all archived Nexenta News articles See all articles from this issue