Auriga Maintains a 'Buy' on Marvell (MRVL); Reducing Estimates on Weaker Macro Trends

Auriga maintains a 'Buy' on Marvell (NASDAQ: MRVL) price target of $18.00.

Auriga analyst says, "Our analysis suggests that MRVL's increasing traction in flash controllers and TD/Android cellular segments should more than offset secular headwinds in Hard disk drives (HDD) and negative momentum at RIM (Nasdaq: RIMM)(Not/Rated). While we reduce our estimates to reflect weakening macro trends, we expect MRVL to continue its aggressive buyback strategy and prudent acquisitions to reward long-term oriented investors. Based on our analysis of end market trends and MRVL's relative competitive positioning, we expect MRVL to grow its top-line at a 7%-8% CAGR over the next five years."

"On weakening macro trends, our FY12 estimate goes to $3.58bln/$1.46 from $3.64bln/$1.52 (consensus at $3.59bln/$1.45), while FY13 is now at $3.82bln/$1.56 from $3.97bln/$1.66 (consensus at $3.88bln/$1.57)."

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

Shares of Marvell closed at $15.30 yesterday.

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