Roth Capital Remains a Buy on Smart Global Holdings Inc

By Carrie Williams

Roth Capital analyst Sujeeva De Silva maintained a Buy rating on Smart Global Holdings Inc (NASDAQ: SGH) on June 22 and set a price target of $24. The company’s shares opened today at $17.36, close to its 52-week high of $17.69.

De Silva said:

“We believe SGH represents a differentiated investment opportunity in a leading provider of specialty memory solutions. We are encouraged by the company’s Brazil memory segment growth and share gains, coupled with a well-positioned specialty memory offering. Upside in the quarter and guidance point to benefit from healthy demand, increasing Brazil local content requirements and a favorable memory pricing environment. We are also encouraged by gross margin upside in the quarter reflecting some of these tailwinds.”

According to TipRanks.com, Silva is a 5-star analyst with an average return of 19.4% and a 63.8% success rate. Silva covers the Consumer Goods sector, focusing on stocks such as Semiconductor Manufacturing, Adesto Technologies Corp, and Quantenna Communications.

Currently, the analyst consensus on Smart Global Holdings Inc is Strong Buy and the average price target is $21, representing a 21.0% upside.

In a report issued on June 19, Jefferies also initiated coverage with a Buy rating on the stock with a $21 price target.

Based on Smart Global Holdings Inc’s latest earnings report for the quarter ending February 28, the company posted quarterly revenue of $172 million and GAAP net loss of $2.34 million. In comparison, last year the company earned revenue of $117 million and had a GAAP net loss of $6.34 million.

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SMART Global Holdings, Inc. engages in designing, manufacturing & supplying of electronic subsystems to OEMs engaged in the computer, industrial, networking, telecommunications, aerospace and defense markets. It has a product line that includes DRAM and Flash memory technologies across various form factors. The company is headquartered in Newark, CA.