UPDATE: Rosenblatt Starts SMART Global Holdings (SGH) at Buy
(updated to add analyst comments)
Rosenblatt analyst Kevin Cassidy initiates coverage on SMART Global Holdings (NASDAQ: SGH) with a Buy rating and a price target of $45.00.
The analyst commented, "We are initiating coverage of SMART Global Holdings with a Buy rating and $45 12-month target price. In our view, memory sub-systems have an increasing importance to overall system performance and are becoming increasing more complex to design. SMART’s +30 years heritage as memory sub-system design expertise. SMART’s recent acquisitions have opened its revenue exposure to high growth markets such as high performance computing for AI and IIoT. We see SMART’s underlying world-class supply chain management and logistics as adding operational efficiency to these acquired business. Meanwhile, the market is valuing SGH as a cyclical memory player with a nearly 85% discount to the SOXX on a NTM P/E basis. We see this undervaluation and misunderstanding of SMART’s business model as a buying opportunity. We derive our $45 12-month target price based on a conservative 1x Price to NTM Sales."
Shares of SMART Global Holdings closed at $28.20 yesterday.
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