SMCI is trading at $21.95 (-4.01%) after being hit by multiple analyst downgrades, compounding pressure from a recent federal indictment and broader chip sector weakness.
- Bank of America lowered its price target from $34 to $24 and issued an 'underperform' rating.
- Citigroup also cut its target price on the stock, dropping it from $39 to $25 while maintaining a 'neutral' rating.
- The downgrades come as the company continues to deal with the fallout from a March indictment of three associated individuals for an alleged illegal export scheme.