Marvell Received its Third Buy in a Row


After B.Riley FBR and Piper Jaffray gave Marvell (NASDAQ: MRVL) a Buy rating last month, the company received another Buy, this time from Needham. Analyst Quinn Bolton assigned a Buy rating to Marvell today and set a price target of $27. The company’s shares closed yesterday at $21.54.

Bolton noted:

“MRVL’s F1Q19 results and F2Q19 guidance were above our expectations across revenue, NG GM and NG EPS. Margins continue to benefit from improving product mix, cost efficiencies, and tight control of OPEX. Importantly, the company will reach its 30% NG OM target in F2Q19, six quarters ahead of expectations. Y/Y growth in the Storage business was driven by record SSD revenue and strength across the enterprise/DC segment. Networking grew Y/Y as new products continue to see demand from the enterprise and campus refresh cycle. The Connectivity business remains in transition as MRVL moves away from low margin segments, including gaming. MRVL remains committed to the CAVM acquisition, which is expected to close in mid-2018. We are encouraged by MRVL’s expanding margins and growth across its core businesses; maintain Buy and $27 PT .”

According to TipRanks.com, Bolton is a top 100 analyst with an average return of 17.1% and a 68.9% 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 Strong Buy and the average price target is $27.86, representing a 29.3% upside.

In a report issued on May 21, B.Riley FBR also reiterated a Buy rating on the stock with a $30 price target.

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Marvell’s market cap is currently $10.68B and has a P/E ratio of 25.27. The company has a Price to Book ratio of 2.58.

Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock.

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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. Its product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceivers, mobile handsets, connectivity and other consumer electronics. The company was founded by Sehat Sutardja, Weili Dai, and Pantas Sutardja in January 1995 and is headquartered in Hamilton, Bermuda.

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