Super Micro Computer: Auditor Increases Odds Of Continued Nasdaq Listing — Hold

Summary:

• Just three weeks after the resignation of Ernst & Young LLP, Super Micro Computer, Inc. surprised market participants with the appointment of a new independent audit firm.
• While not as large as market leaders Deloitte, EY, PwC, and KPMG, BDO certainly has the capabilities and resources to conduct an expedited audit of the company’s FY2024 financial statements.
• At least in my opinion, the quick appointment of a large, capable audit firm has added some much-needed credibility to the company’s plan of regaining Nasdaq compliance.
• Consequently, I would expect Nasdaq to grant the maximum 180-day extension period permitted under its regulatory framework.
• While the quick appointment of BDO is good news, the massive after-hours rally and the company’s muted H1/FY2025 outlook are keeping me from getting more constructive on the shares at this point.

Note:

I have covered Super Micro Computer, Inc. (NASDAQ:SMCI) previously, so investors should view this as an update to my earlier articles on the company.

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