Needham & Company Maintains a 'Buy' on Marvell (MRVL); Lowering Our Estimates on a Below Seasonal 2H11

Needham & Company maintains a 'Buy' on Marvell (NASDAQ: MRVL), PT lowered from $22.50 to $19.50.

Needham analyst says, "In coordination with our industry report, Summer Earnings Preview: Wait For the Event, Then Buy The News, we are lowering our estimates on MRVL. The revision is to reflect a below-seasonal 2H11 in PCs as well as reduced comm. processor shipments to Research In Motion (Nasdaq: RIMM) and TD-SCDMA smartphone OEMs. We believe the RIMM overhang, delayed ramp of TD-SCDMA smartphones in China, growth of SSDs in non-traditional computing forms, and a sluggish PC market will continue to serve as an overhang on shares of MRVL in the near term, limiting multiple expansion. As such, we believe investors should wait for C3Q11 guidance and estimates to shake out before adding to positions. We note, however, that we have factored the recent ~$200MM of share repurchases into our model and believe that EPS upside remains should the company continue to utilize its ongoing share repurchase program."

For more ratings news on Marvell click here and for the rating history of Marvell click here.

Shares of Marvell closed at $14.68 yesterday.

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