Needham analyst Rajvindra Gill raised his price target on Smart Global to $45 and kept his Buy rating after its "mixed" Q1 results, noting that its sales were in-line with expectations while gross margins were below forecasts. The analyst attributes the miss to delay in government orders related to Penguin Computing, with margins also affected by lower volumes and a higher sales mix in Brazil. Gill believes that Penguin growth will re-accelerate given that its next year's projects have already been approved at the White House as part of the appropriation bill, with his new price target driven by his estimates rolled to 2021.