SMART Global Holdings (SGH) PT Raised to $55 at Stifel

Stifel analyst Brian Chin raised the price target on SMART Global Holdings (NASDAQ: SGH) to $55.00 (from $48.00) while maintaining a Buy rating.

The analyst comments "We reiterate our Buy rating on SMART Global Holdings, which we believe is undergoing an identity shift under CEO Mark Adams. Less than six months in, we believe Mr. Adams is already instilling a “big company” operating mentality at SMART, while infusing the company with renewed focus, talent and leadership. As a direct byproduct of this, we believe SMART is poised to improve the growth profile and margin structure of the company both in the near and longer-term. Looking to become a more diversified, best-in-class operator within each of its served markets, SMART’s notable recent moves include: 1) Injecting capital and structure into its growth-oriented high-performance compute (HPC) business, and 2) Revitalizing an under-addressed asset in Cree’s LED business. Yet at 10.6x our CY22 EPS (8.9x including projected accretion from LED), we believe these ongoing actions remain under-recognized, for now."

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