Needham analyst Rajvindra Gill lowered his price target on Smart Global to $35 after its Q4 earnings miss and below-consensus guidance for Q1. The analyst notes that the quarter was pressured by the ongoing NAND memory component price declines as well as softness in Specialty Memory due to excess inventory among the company's OEM customers. Gill still keeps his Buy rating on Smart Global however, stating that the weakness in memory pricing is "well documented" and pointing to the company's 300bps gross margin expansion forecast. The analyst is also positive on Smart Global's aquisitions of Artesyn and Inforce, which he anticipates to contribute $90M-$100M in revenue and be "margin accretive."