Northland analyst Nehal Chokshi is suspending the firm’s rating and price target on Supermicro (SMCI) after the company announced that Ernst & Young has resigned from being the company’s registered public accounting firm. The firm, which believes “the crux of the resignation” is recent events that led to EY concluding it is not clear whether and how Supermicro can achieve true independence between the board and management such that adequate oversight is achieved, seeks further information on governance and how better governance can be achieved while keeping “key visionary and founding” CEO Charles Liang highly engaged, the analyst tells investors.
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