Wedbush Downgrades SMART Modular Technologies (SMOD) to Neutral; Silver Lake Aims To Take SMART Private in All-Cash Deal
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Price: $9.23 --0%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush downgraded SMART Modular Technologies (NASDAQ: SMOD) from Outperform to Neutral. PT lowered from $11 to $9.25.
Wedbush analyst says, "We downgrade SMOD and reduce PT following the company’s announcement yesterday that it has entered into a definitive agreement to be acquired by Silver Lake Partners and Silver Lake Sumeru for
$9.25 in cash per share. While SMART has a 45-day go-shop period, we believe it is unlikely that it will receive a competing bid and even though the $9.25 offer is below our $11 PT, we believe the price is fair as (1) at this level, the recovery of the DRAM market appears largely priced in, (2) meaningful increases in DRAM prices are unlikely as the 9.0 earthquake in Japan doesn’t appear to have constrained the supply chain, (3) design-win momentum and ramp of enterprise SSD business is uncertain, and (4) increasing challenges in SSD competitive landscape require significant R&D investments."
For more ratings news on SMART Modular Technologies click here and for the rating history of SMART Modular Technologies click here.
Shares of SMART Modular Technologies closed at $9.27 yesterday.
Wedbush analyst says, "We downgrade SMOD and reduce PT following the company’s announcement yesterday that it has entered into a definitive agreement to be acquired by Silver Lake Partners and Silver Lake Sumeru for
$9.25 in cash per share. While SMART has a 45-day go-shop period, we believe it is unlikely that it will receive a competing bid and even though the $9.25 offer is below our $11 PT, we believe the price is fair as (1) at this level, the recovery of the DRAM market appears largely priced in, (2) meaningful increases in DRAM prices are unlikely as the 9.0 earthquake in Japan doesn’t appear to have constrained the supply chain, (3) design-win momentum and ramp of enterprise SSD business is uncertain, and (4) increasing challenges in SSD competitive landscape require significant R&D investments."
For more ratings news on SMART Modular Technologies click here and for the rating history of SMART Modular Technologies click here.
Shares of SMART Modular Technologies closed at $9.27 yesterday.
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