In a report released today, Quinn Bolton from Needham reiterated a Buy rating on Marvell (NASDAQ: MRVL), with a price target of $27. The company’s shares closed yesterday at $18.87.
Bolton wrote:
“We attended Marvell’s analyst day where management reiterated its 6-8% revenue CAGR target and highlighted the long-term growth strategy for the combined company. Marvell expects a 4x increase in dollar content within 5G base stations vs its content in 4G base stations due to more complex baseband signal processing. Growth in the DC market will be driven by ThunderX2 processors, Liquid Security products and traditional Ethernet switch/PHY and Storage solutions. Marvell expects to grow its Storage revenue in-line with the market due to growth in Data Center and new products (preamps and new flash solutions) offsetting PC HDD declines. With secular growth drivers, an attractive valuation and its focus on shareholder returns, we believe Marvell is defensively positioned and reiterate our Buy rating and $27 PT .”
According to TipRanks.com, Bolton is a 5-star analyst with an average return of 14.7% and a 61.6% success rate. Bolton covers the Consumer Goods sector, focusing on stocks such as MACOM Technology Solutions Holdings Inc, Sequans Communications S A, and Quantenna Communications.
Marvell has an analyst consensus of Strong Buy, with a price target consensus of $27, a 43.1% upside from current levels. In a report issued on October 10, B.Riley FBR also maintained a Buy rating on the stock with a $26 price target.
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Marvell’s market cap is currently $12.42B and has a P/E ratio of 28.26. The company has a Price to Book ratio of 1.62.
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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.
