In a report released today, Rick Schafer from Oppenheimer maintained a Buy rating on Marvell (MRVL), with a price target of $26. The company’s shares closed yesterday at $19.95.
Schafer noted:
“MRVL reports F4Q (Jan.) earnings Thursday (3/7). We see results in-line to pre- announced (2/6) sales of $740M and a negative bias to outlook. F1Q (Apr.) consensus sales/EPS are $718M/$0.23 vs. our $680M/$0.23. MRVL lowered F4Q top line $70M reflecting storage weakness previously telegraphed by storage heavyweights WDC and STX. We see the storage market malaise exacerbated by the much discussed 1H slowdown in DC/cloud spending as some leading hyperscalers digest capacity. Mgmt expects softness to persist into F1Q. On the positive side, high-growth networking appears on track, led by new products and early-5G wireless infrastructure builds. MRVL mgmt is executing through a challenging storage environment made worse by macro uncertainties and the ongoing semi cycle correction. Our structural long-term bull thesis remains intact. We reiterate Outperform and $26 PT.”
According to TipRanks.com, Schafer is a top 100 analyst with an average return of 15.1% and a 70.0% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Skyworks Solutions, and Texas Instruments.
Marvell has an analyst consensus of Strong Buy, with a price target consensus of $23.59, a 18.2% upside from current levels. In a report issued on February 19, Macquarie also upgraded the stock to Buy with a $24 price target.
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The company has a one-year high of $25.18 and a one-year low of $14.34. Currently, Marvell has an average volume of 11.95M.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MRVL in relation to earlier this year.
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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.
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