Here's Why SMART Global Holdings Stock Gained 18% on Wednesday

Shares of electronic components manufacturer SMART Global Holdings (NASDAQ: SGH) closed up 17.8% today, pushed higher by fiscal third-quarter results posted after Tuesday's close, and further buoyed by bullish comments from research outfit Jefferies (NYSE: JEF). The scope of that beat and guidance were enough to prompt Jefferies analyst Mark Lipacis to pen a note to clients suggesting SMART Global is an "under-the-radar transformation play." The stock's sizable rally for the day indicates that Jefferies' clients (as well as other investors) agree with Lipacis.