UPDATE: Marvell (MRVL) PT Raised to $75 at Susquehanna

Susquehanna analyst Christopher Rolland raised the price target on Marvell (NASDAQ: MRVL) to $75.00 (from $72.00) while maintaining a Positive rating.

The analyst comments "On Wednesday, October 6, Marvell hosted its 2021 analyst day. Key takeaways of the day include: 1) a doubling down on ASICs for cloud infrastructure, now at the forefront of revenue growth; 2) Inphi and Innovium acquisitions providing a complete cloud DC networking portfolio that scales; 3) Marvell bets big on custom cloud-optimized silicon across Compute, Storage, Networking, Security, and Electro-optics and is engaged with some hyperscalers directly for co-development (with NREs); 4) new custom/optimized cloud and auto compute chips were announced; 5) Marvell updated cloud infrastructure TAM/SAM outlooks signifying strong growth, accelerated through the recent addition of Inphi and Innovium; 6) Storage is now back on growth trajectory, as Marvell has successfully pivoted >60% of Storage revenue to data center while it also looks to outgrow the DC storage market by offering cloudoptimized solutions; and 7) management raised their long-term top-line growth rate target from 12-16% in June 2021 to 15-20% today, primarily driven by Cloud, 5G, and Auto. The midpoints of the company’s new long-term financial model suggest Marvell can achieve ~ $3.50 of CY2025 non-GAAP EPS. We reiterate our Positive rating and raise our price target from $72 to $75 (~75.5x 2021E EV/NOPAT)."

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