After MKM Partners and Barclays gave Marvell (NASDAQ: MRVL) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Rick Schafer maintained a Buy rating on Marvell today and set a price target of $30. The company’s shares closed yesterday at $15.50, close to its 52-week low of $14.69.
Schafer said:
“MRVL reported F3Q (Oct) earnings Tuesday. Sales/EPS of $851M/$0.33 beat consensus $844M/$0.32. F4Q (Jan) outlook of $810M/$0.32 was mixed compared to Street $848M/$0.33. F4Q top-line miss was greater than we expected, though margin improvement and cost control kept EPS stable. GM increased 90bp and will be up 40bps Q/Q despite lower sales. F4Q GM lift is mix-driven and does not include $50M COGS synergies from CAVM, a roughly 150bp tailwind. Reduced outlook was led by storage, unsurprising given recent negative commentary from storage customers (WDC, STX, Toshiba). We appreciate mgmt’s consistent upside execution over the past two+ years and the under-appreciated self-help component of MRVL’s story. The strategic/accretive CAVM deal is an upside driver from here, in our view. We reiterate our Outperform.”
According to TipRanks.com, Schafer is a top 100 analyst with an average return of 13.4% and a 65.3% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Skyworks Solutions, and Texas Instruments.
Currently, the analyst consensus on Marvell is a Strong Buy with an average price target of $26.67, representing a 72.1% upside. In a report issued on November 29, MKM Partners also maintained a Buy rating on the stock with a $27 price target.
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Marvell’s market cap is currently $10.21B and has a P/E ratio of 23.21. The company has a Price to Book ratio of 1.33.
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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.
