In a report released today, Rajvindra Gill from Needham maintained a Hold rating on Smart Global Holdings Inc (SGH). The company’s shares closed yesterday at $23.87, close to its 52-week low of $21.04.
Gill commented:
“Smart guided F3Q (May) revenue 26% below the Street at $265MM/$0.36 vs. Street’s $334.4MM/$0.90. The largest segment, Brazil (48% of sales), will decline due to the rapid fall in memory pricing (NAND/DRAM) and subsequent customer delays. Moreover, over the long-term, there’s an increased likelihood that the local content requirements will remain at 50% in CY20 (rather than 60%) as a result of a recent WTO ruling, which will impact overall units. Specialty Memory (38%) is also undergoing an adjustment period characterized by customers reducing their buffer inventory caused by a decrease in lead times after 26-week lead times. Net, we remain on the sidelines as we see both short-term and long-term risk to the Brazil segment and subsequent gross margin pressure over the next several quarters, limiting earnings growth.”
According to TipRanks.com, Gill is a 5-star analyst with an average return of 9.7% and a 53.4% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Everspin Technologies Inc, and Adesto Technologies Corp.
Currently, the analyst consensus on Smart Global Holdings Inc is a Strong Buy with an average price target of $37.20.
See today’s analyst top recommended stocks >>
Based on Smart Global Holdings Inc’s latest earnings release for the quarter ending November 30, the company reported a quarterly net profit of $30.98 million. In comparison, last year the company had a net profit of $36.79 million.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
SMART Global Holdings, Inc. engages in the design, manufacture, and sale of specialty memory solutions and services to the electronics industry. It deals with the computer, industrial, networking, telecommunications, aerospace, and defense markets. It has a product line that includes DRAM and Flash memory technologies.
