01:14 PM EST, 11/04/2024 (MT Newswires) -- Super Micro Computer ( SMCI ) might struggle to remain listed amid questions that need to be answered following the resignation of Ernst & Young as its auditor, Wedbush said in a report Monday.

"It arguably appears to be an uphill battle for SMCI to remain listed at this point," the investment firm said, adding that investors will be more interested in scrutinizing EY's decision, the company's 10K filing, and a reported Department of Justice investigation than discussing its upcoming fiscal Q1 report.

Although management is suggesting that the company faces no problems with financials, Wedbush said investors will have to account for the possibility that "a larger problem might exist."

Wedbush said it believes "SMCI being delisted might arguably be a best case outcome at this point."

The investment firm maintained its neutral rating on the stock and slashed its price target to $32 from $62.

Shares of the company were up 0.8% in recent trading.

Price: 26.25, Change: +0.20, Percent Change: +0.77