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Barclays Lowers Estimates on Marvell (MRVL); Buyback and Taxes Only a Band-Aid

August 17, 2012 3:41 PM EDT Send to a Friend
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Price: $13.81 +0.36%

Rating Summary:
    16 Buy, 18 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 6 | Down: 11 | New: 24
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Barclays maintains an 'Equalweight' on Marvell (NASDAQ: MRVL) price target of $14.00.

Analyst, Blayne Curtis, said, "Marvell reported July revenues well below expectations but buybacks and lower taxes resulted in EPS only marginally below the Street. October guidance was also soft on muted HDD growth and a weaker outlook for Mobile & Wireless. While we understand the return of shareholder equity through buyback and dividends, we believe investors will just compress the multiple further on earnings growth through buybacks and remain on the sidelines until we gain greater visibility on material top line drivers."

Curtis lowers FY12 EPS estimate from $1.08 to $0.94 and FY13 from $1.22 to $1.13. FY12 revenues cut from $3.402B to $3.249B and FY13 from $3.642B to $3.527B.

For an analyst ratings summary and ratings history on Marvell click here. For more ratings news on Marvell click here.

Shares of Marvell closed at $12.28 yesterday.




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