UPDATE: D.A. Davidson & Co. Initiates Coverage on Super Micro Computer on Leveraging Intel Product Cycles to Take Market Share

In a report published Friday, D.A. Davidson & Co. analyst Mark Kelleher initiated coverage on Super Micro Computer SMCI with a Buy rating and $18.50 price target. In the report, D.A. Davidson & Co. noted, “Super Micro is typically one of the first vendors to introduce new servers based on Intel's latest CPU architecture. The company combines the new CPUs with its internal R&D to create industry-leading x86-based servers, with which it takes market share from its larger competitors. Ivy Bridge is the latest Intel CPU architecture just reaching the market, and we believe SMCI is well positioned to benefit from this latest Intel product cycle. SMCI has introduced power-optimized, densely configured servers that target the growing opportunities within the large-scale Internet data center market.” Super Micro Computer closed on Thursday at $14.61.