In a report released today, Craig Ellis from B.Riley FBR reiterated a Buy rating on Marvell (NASDAQ: MRVL), with a price target of $30. The company’s shares opened today at $20.90.
Ellis noted:
“Marvell’s (MRVL) F2Q19 results and F3Q19 outlook tracked toward our expectation with core business upside, but Cavium was softer as inventory digestion concludes. However, synergies targets rose from $150-$175.0M to $200.0M and long-term financial targets were reiterated. Shares rallied +6.8% AMC. There are positives and negatives, but T2-quarter Cavium uncertainties are now behind but with opex synergies immediately ahead and COGS synergies plus share repurchase following a few quarters later in our view. Growth should attain +6-8% Y/ Y levels early next year, gross margins are already within 50 bps of the 65.0% long-term target, debt pay-down should pace at $100.0M/qtr, and share repurchase could re-start meaningfully in F1H20.”
According to TipRanks.com, Ellis is a top 25 analyst with an average return of 31.8% and a 71.5% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Axcelis Technologies, and Silicon Laboratories.
Currently, the analyst consensus on Marvell is a Strong Buy with an average price target of $28.45, a 36.1% upside from current levels. In a report issued on August 27, Cowen & Co. also maintained a Buy rating on the stock with a $26 price target.
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The company has a one-year high of $25.18 and a one-year low of $17.20. Currently, Marvell has an average volume of 8.98M.
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Marvell Technology Group Ltd. engages in the business of providing semiconductors to high-performance application-specific standard products. It focuses on the development of complex System-on-a-Chip devices leveraging extensive technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing, and embedded and stand alone integrated circuits. The company’s product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceivers, mobile handsets, connectivity and other consumer electronics. Marvell Technology Group was founded by Sehat Sutardja, Weili Dai, and Pantas Sutardja in January 1995 and is headquartered in Hamilton, Bermuda.
