JP Morgan staying ‘sidelined’ on Super Micro even as committee finds no wrongdoing
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Contributor since / Followers
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3 weeks ago
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- Even as an independent special committee has found no wrongdoing, investment firm J.P. Morgan said it is staying “sidelined” on Super Micro Computer (NASDAQ:SMCI) until it gets better visibility into compliance issues.
- Shares rose 5% in premarket trading.
- “In our view, the next key watch points for investors to monitor include: whether the new independent auditors, BDO, accept the findings of the Special Committee or decide to undertake their own independent review; and whether Nasdaq supports Super Micro’s request for an extension of time to regain compliance with the Nasdaq continued listing requirements, where the company has already outlined its intention to complete its 10-K and 10-Q filings and become current within the discretionary period available,” analyst Samik Chatterjee wrote in a note to clients. Chatterjee kept his Underweight rating on Super Micro.
- Super Micro said on Monday that an independent special committee found no evidence of misconduct by the board of directors or audit committee. The company also said it does not expect to restate its financial statements based on the committee’s review, thought it did recommend hiring a new CFO.