UPDATE: Stifel Resumes Marvell (MRVL) at Buy

(updated to add analyst comment)

Stifel analyst Tore Svanberg takes over primary coverage on Marvell (NASDAQ: MRVL) with a Buy rating and a price target of $29.00.

The analyst comments "We believe Marvell’s storage segment will continue to provide steady cash flow that can be utilized to fund development of technology for higher growth markets. We estimate that the company’s storage segment can grow in the low single digits y/y in the mid-term with segment gross margins in the high 60% range and operating margins in the low 30% range. This growth is driven by SSD revenue (about 1/3 of current segment revenue) growing in the mid-teens annually, more than offsetting a low single digit annual decline in HDD revenue. We expect the storage inventory correction that pressured FY1H20 segment results (down about 15% y/y) to resolve by the end of CY19 allowing Marvell to return to a revenue runrate in the low $300/quarter range."

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 $23.99 yesterday.

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