B.Riley FBR Maintains Their Buy Rating on Marvell (MRVL)


In a report released today, Craig Ellis from B.Riley FBR maintained a Buy rating on Marvell (MRVL), with a price target of $27. The company’s shares closed last Monday at $24.20.

Ellis wrote:

“Marvell Technology’s (MRVL) 8/29 AMC results eclipsed the the guide missed by $38M/$0.04 as intensifying macro pressure more than offset a Storage rebound and early initial 5G base station sales. Shares fell 4% AMC. We had four takeaways. First, F2Q’s sales, GM, and opex were strong despite macro crosscurrents. Second, F3Q’s lower guide has three Networking headwinds: lower enterprise demand, a large customer issue, and inventory normalization. Yet Storage is improving on a range of factors. Third, 5G base station parts will ship early in $600M annual LT sales bogey worth $150M of incremental annual FY21-24 sales, has upside as new customers ramp.”

According to TipRanks.com, Ellis is a 4-star analyst with an average return of 3.5% and a 50.0% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Applied Materials Inc, Axcelis Technologies, and Rudolph Technologies.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Marvell with a $27.31 average price target, implying a 13.6% upside from current levels. In a report issued on August 23, UBS also reiterated a Buy rating on the stock with a $29 price target.

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Based on Marvell’s latest earnings release for the quarter ending April 30, the company reported a quarterly GAAP net loss of $48.45 million. In comparison, last year the company had a net profit of $6.76 million.

Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MRVL in relation to earlier this year.

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Marvell Technology Group Ltd. engages in the design, development, and sale of integrated circuits. The company offers System-on-a-Chip devices, which leverages technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits.

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