BWS Financial Downgrades Marvell Technology (MRVL) to Buy

January 22, 2009 9:34 AM EST

BWS Financial downgrades Marvell Technology (Nasdaq: MRVL) from Strong Buy to Buy. Price target lowered to $8 from $11.50.

BWS analyst says, "Downgrading as there has been clear evidence of further deterioration in all markets the Company serves. Hard disk makers are going through an inventory situation while other segments have pushed out their purchasing requirements due to softer sales. The valuation seemed reasonable over the last few months due to MRVL being diversified in many segments, but it seems the broad revenue stream is only adding to the problem. We have lowered our below consensus revenue and earnings numbers further, and now see MRVL reporting revenue of $664.5 million for the fourth quarter. Our first quarter revenue estimate is now $629.9 million, which could be too high given the lack of clarity into the next quarter...We would accumulate MRVL shares at current levels with a long-term viewpoint, but would not rush to buy as our previous rating had suggested."

Marvell Technology Group Ltd. is a global semiconductor provider of application-specific standard products (ASSPs).

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