Jefferies analyst Mark Lipacis lowered his price target for Smart Global Holdings to $33 from $37 saying the company's August quarter sales missed by 230 basis points due in part to lower supply chain services and its November quarter rev outlook is 940 basis points lower due to weaker specialty memory. Importantly, Smart Global guided its Brazil memory business to grow quarter-over-quarter, which runs counter to the bear case that Brazil memory materially declines due to changes in regulation, says Lipacis. He believes the company's price-to-earnings multiple will expand as it diversifies away from Brazil. The stock's valuation at current levels is "compelling," says the analyst, who reiterates a Buy rating on the shares.