Citi Lowers Price Target On SMART Modular Technologies (SMOD)

Citi Investment Research is lowering its price target on SMART Modular Technologies Inc SMOD to $8 from $9, and is keeping its Hold rating after the company reported earnings yesterday. In a note sent to clients, Citi writes, "We are lowering our estimates to reflect the drastic decline in DRAM prices throughout the quarter as well as anticipated declines over the next several quarters. Our target price goes to $8.00 from $9.00, representing 25% upside. We maintain our Hold (2S) rating as we believe SMART can navigate this difficult price environment & remain profitable, and we continue to be constructive on their SSD initiative which should gain traction in 2011." Shares of SMOD are off 87 cents in pre-market trading to $5.50, a loss of 13.66%.