SGH price target lowered to $20 from $24 at Deutsche Bank

Deutsche Bank analyst Sidney Ho lowered the firm’s price target on SGH to $20 from $24 and keeps a Buy rating on the shares. The company delivered a solid fiscal Q1 beat driven by stronger IPS revenue and associated margin uplift, which more than offset weaker revenue from LED and memory, Ho tells investors in a research note. While the Q2 revenue guide was slightly below estimates with the company seeing similar business trends, higher gross margin leads to an earnings guide above estimates, says the analyst. He views SGH’s risk/reward profile are attractive at current share levels.