Marvell (MRVL) PT Lowered to $95 at UBS Following Weak Data Center Guidance

UBS analyst Timothy Arcuri lowered the price target on Marvell (NASDAQ: MRVL) to $95.00 (from $110.00) while maintaining a Buy rating.

The analyst commented, "Pro-forma of the ~$60MM lost from the sale of the auto ethernet business, revenue guidance was right about where we expected. The issue, though, is mix because data center guidance was weak, with the delta being made up in segments such as carrier and enterprise that are less important to the investment debate. The stock will likely trade down, but the only thing that has really changed here is some lumpiness in the AMZN custom ASIC business between FQ3/FQ4 due to the Trainium refresh (we think). Amid this, it would have been nice to get some reassurances on existing programs and outlook for key ASIC customers that MRVL has already said grow in C2026; but we do not see any change in the situation and still see its AMZN business growing next year - just as it has guided in the past with (we think) MSFT still on track to ramp in very late '26/early '27. To some degree, this is the nature of the custom ASIC business when it is such a concentrated piece of revenue, but the customer base should start to expand as new engagements ramp and the optics business looks set for strong growth alongside rack ramps. Net, we are taking a little more conservative tack on estimates, and our price target comes down to $95/share from $110/share, but we still fundamentally see ~$4 EPS power in C2027."

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Home Depot (HD) call put ratio 1.5 calls to 1 put with a focus on September 330 puts into quarter results
• Freedom Broker Upgrades Serve Robotics (SERV) to Buy