UPDATE: Rosenblatt Starts SMART Global Holdings (SGH) at Buy

June 5, 2020 5:19 AM EDT
Get Alerts SGH Hot Sheet
Price: $45.86 +2.57%

Rating Summary:
    6 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 5 | New: 41
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(Updated - June 5, 2020 6:22 AM EDT)

(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."

For an analyst ratings summary and ratings history on SMART Global Holdings click here. For more ratings news on SMART Global Holdings click here.

Shares of SMART Global Holdings closed at $28.20 yesterday.


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