SGH price target raised to $32 from $27.50 at Stifel

Stifel raised the firm’s price target on SGH to $32 from $27.50 and keeps a Buy rating on the shares after the company hosted an analyst day and announced that it plans to rebrand the company as Penguin Solutions to symbolize the company’s transformation into an AI focused solutions company. This evolution is not a complete 180, but rather an extension of the legacy Penguin high-performance-computing business that designs, builds, deploys and manages enterprise AI compute infrastructure, the analyst tells investors. The firm raised its target, citing a better understanding of the company’s vision, go-to-market strategy, and the processes and product offerings that positions it for scale.