Needham transferred coverage of SGH to analyst Quinn Bolton, who rates the stock at Buy with a price target of $22, down from $37. SGH missed Q4 and Q1 revenue expectations by $25M and $65M, respectively, excluding SMART Brazil, while its IPS and Memory Solution segments declined sequentially in Q4 and are expected to decline again in Q1 and its LED segment bounces along the bottom, the analyst tells investors in a research note. Needham adds however that with the SMART Brazil now accounted for as a discontinued operation and the company’s margin structure having significantly improved, the stock’s valuation multiples can take a step higher.
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Read More on SGH:
- SGH price target lowered to $25 from $30 at Barclays
- SMART Global (NASDAQ: SGH) Plunges as Q4 Results Disappoint
- SGH says Intelligent Platform Solutions revenue to be weighted toward H2 of 2024
- SGH falls 21% to $18.64 after Q4 earnings miss, below-consensus guidance
- SGH sees Q1 EPS 0c-30c, consensus 40c
