Needham analyst Quinn Bolton maintained a Buy rating on Marvell (MRVL) today and set a price target of $25. The company’s shares closed yesterday at $15.50, close to its 52-week low of $14.69.
Bolton noted:
“MRVL reported in-line results for the combined company’s first full quarter. Storage revenue was in line with expectations while Networking was better than expected, driven by MRVL’s switch/PHY products and OCTEON processors. However, F4Q19 guidance fell below expectations due to a weak outlook for Storage and WiFi, partially mitigated by LSD Q/Q growth in Networking. MRVL expects Storage to remain soft for several quarters as customers work through excess inventory. While we remain buyers of MRVL given its attractive valuation and growth opportunities in the Infrastructure markets, we are lowering our estimates and PT to $25, which is 15x our CY20 NG EPS estimate, to reflect the near term softness in the Storage business.”
According to TipRanks.com, Bolton is a 5-star analyst with an average return of 12.0% and a 61.2% 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 $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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The company has a one-year high of $25.18 and a one-year low of $14.69. Currently, Marvell has an average volume of 12.15M.
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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.
