Marvell (MRVL) Received its Third Buy in a Row

After Cowen & Co. and Oppenheimer gave Marvell (NASDAQ: MRVL) a Buy rating last month, the company received another Buy, this time from Needham. Analyst Quinn Bolton maintained a Buy rating on Marvell today and set a price target of $27. The company’s shares closed yesterday at $19.46.

Bolton noted:

“MRVL’s standalone F2Q19 results were better than expected, but the combined MRVL/CAVM outlook was softer than anticipated due largely to management’s decision to work down high inventory levels at CAVM customers and distributors. Despite some weakness in CAVM’s SP and base station markets, management believes CAVM’s inventory drawdown will be resolved by F4Q19 after the channel has been flushed. Resulting from improving product mix and cost efficiencies, MRVL’s F2Q19 NG OM was 30.1% (six quarters earlier than anticipated). Networking businesses continued to post strong results with Y/ Y growth in both segments. We reiterate our Buy and $27 PT given the company’s expanding margins and continued revenue growth across its core businesses despite the near-term drag caused by the CAVM inventory situation.”

According to TipRanks.com, Bolton is a 5-star analyst with an average return of 16.5% and a 66.4% 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.

Currently, the analyst consensus on Marvell is a Strong Buy with an average price target of $27.78, which is a 42.8% 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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Marvell’s market cap is currently $9.73B and has a P/E ratio of 21.27. The company has a Price to Book ratio of 2.27.

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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.