Kaufman Bros. Cuts Price Target on Marvell (MRVL), Views Overall Results and Guidance as Solid

Kaufman Bros. is reaffirming its Buy rating on shares of Marvell (NASDAQ: MRVL) and is lowering its price target from $20 to $18 as a result of increased market risk premium.

The company released its July quarter results slightly ahead of what the street was forecasting and issued its October quarter guidance with a $960 million estimate for revenue and $0.41 for EPS. The firm notes that the beat was largely due to better than expected results in HDDs as they grew 13 percent quarter-over-quarter.

The firm is raising its October quarter EPS estimate by $0.01 to $0.41 and is lowering its revenue estimate from $964 million to $961 million. Kaufman Bros. is maintaining its 2012 EPS estimate of $1.45 but is lowering its 2013 estimate of $1.65 to $1.63.

An analyst at Kaufman Bros. comments, "We view July quarter results and guidance as a positive catalyst relative to investor expectations and MRVL's recent stock performance, simply because we believe the Street consensus EPS are not going to be cut off this earnings call."

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

Shares of Marvell closed at $11.97 yesterday.

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