SGH price target raised to $25 from $23 at Needham

Needham analyst Rajvindra Gill raised the firm’s price target on SGH to $25 from $23 and keeps a Buy rating on the shares. The company’s Q1 results were "strong" and its Q2 guidance was "better than feared" as its recent Stratus acquisition helped deliver record gross margins, the analyst tells investors in a research note. Gill adds that the diversification strategy of SGH continues to play out as expected, stating that he is "incrementally positive" on the company amidst two bottoming businesses and the stock’s valuation being below historical average.