UPDATE: Wedbush Downgrades SMART Modular Technologies to Neutral (SMOD)

Wedbush is out with its report today on SMART Modular Technologies SMOD, downgrading shares of SMOD from Outperform to Neutral. In a note to clients, Wedbush writes, "We downgrade SMART Modular to a NEUTRAL rating from OUTPERFORM and we reduce our PT to $9.25 from $11 following the company's announcement yesterday that it has entered into a definitive agreement to be acquired by Silver Lake Partners and Silver Lake Sumeru for $9.25 in cash per share. While SMART has a 45-day go-shop period, we believe it is unlikely that it will receive a competing bid and even though the $9.25 offer is below our $11 PT, we believe the price is fair as (1) at this level, the recovery of the DRAM market appears largely priced in, (2) meaningful increases in DRAM prices are unlikely as the 9.0 earthquake in Japan doesn't appear to have constrained the supply chain, (3) design-win momentum and ramp of enterprise SSD business is uncertain, and (4) increasing challenges in SSD competitive landscape require significant R&D investments." At the time of posting, shares of SMOD were trading pre-market at $9.25, down 0.22% from Tuesday's close.