CORRECTION - FBR Capital Maintains an 'Overweight' on Marvell (MRVL); Cellular Business Still Intact for 2011 with RIM; Stock Likely Near a Bottom
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Price: $65.24 -1.87%
Rating Summary:
45 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
45 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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FBR Capital maintains an 'Overweight' on Marvell (NASDAQ: MRVL).
Barclays analyst says, "We have received many investor calls today about Marvell and its cellular business prospects. For MRVL, we think business bottoms in 1Q in storage and cellular, and should ramp from here, with recent positive guidance commentary from Seagate another data point supporting this view. Investor skepticism on the name is meaningful, and we believe is fully reflected in MRVL's 9x P/E (2011 including stock compensation expense). MRVL is a deep value, contrarian idea and we expect business to decently improve in 2H11. Management has been aggressively buying back shares, and we could justify deal rationale for a private equity firm, or larger chip firm, to make a play for MRVL given valuation and cash flow metrics. We think shares trade between $15-$21 the remainder of this year, seemingly attractive risk/reward at current levels."
"Cellular is and has been an ongoing risk for Marvell, but nothing has changed near-term...Still set to ramp in three of four non-world phone platforms with Research in Motion (Nasdaq: RIMM) in 2011...QNX roadmap intercept likely in mid-2012; RIM may not be ready for QNX before then. While some QNX transition risks do exist for Marvell, we generally think Marvell will be ready to intercept RIM’s QNX roadmap in early- to mid-2012, largely consistent with when RIM will be pursuing volume launches of new devices...China Mobile (NYSE: CHL) beginning to ramp, could contribute $40M in 2H11."
For more ratings news on Marvell click here and for the rating history of Marvell click here.
Shares of Marvell closed at $16.39 yesterday.
Barclays analyst says, "We have received many investor calls today about Marvell and its cellular business prospects. For MRVL, we think business bottoms in 1Q in storage and cellular, and should ramp from here, with recent positive guidance commentary from Seagate another data point supporting this view. Investor skepticism on the name is meaningful, and we believe is fully reflected in MRVL's 9x P/E (2011 including stock compensation expense). MRVL is a deep value, contrarian idea and we expect business to decently improve in 2H11. Management has been aggressively buying back shares, and we could justify deal rationale for a private equity firm, or larger chip firm, to make a play for MRVL given valuation and cash flow metrics. We think shares trade between $15-$21 the remainder of this year, seemingly attractive risk/reward at current levels."
"Cellular is and has been an ongoing risk for Marvell, but nothing has changed near-term...Still set to ramp in three of four non-world phone platforms with Research in Motion (Nasdaq: RIMM) in 2011...QNX roadmap intercept likely in mid-2012; RIM may not be ready for QNX before then. While some QNX transition risks do exist for Marvell, we generally think Marvell will be ready to intercept RIM’s QNX roadmap in early- to mid-2012, largely consistent with when RIM will be pursuing volume launches of new devices...China Mobile (NYSE: CHL) beginning to ramp, could contribute $40M in 2H11."
For more ratings news on Marvell click here and for the rating history of Marvell click here.
Shares of Marvell closed at $16.39 yesterday.
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