Nomura Securities Maintains a 'Neutral' on Marvell (MRVL); Impact of Thai Flooding

Nomura Securities maintains a 'Neutral' on Marvell (NASDAQ: MRVL) price target of $15.00.

Nomura analyst, Romit Shah, said, "Considering that Western Digital (NYSE: WDC) is guiding hard disk drive shipments down 60% sequentially due to the flooding in Thailand, we calculate the potential impact to Marvell’s January quarter. Overall, we see a potential impact of as much as $175mn in revenue and 0.16-0.18 in EPS to FQ4. This would imply total revenue of $758mn and EPS of $0.15 for the January quarter, as compared with our estimate of $932mn and EPS of $0.32, including ESO. Our assumptions do not assume changes in market share and higher capacity in other regions that could potentially offset some of the impact from Thailand."

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

Shares of Marvell closed at $13.70 yesterday.

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