Nomura Securities Maintains a 'Neutral' on Marvell (MRVL); Cutting Estimates

Nomura Securities maintains a 'Neutral' on Marvell (NASDAQ: MRVL) price target of $13.00.

Analyst, Romit Shah, said, "Marvell lowered the midpoint of revenue on Friday from $800mn (down 16% q/q) to $740mn (down 22% q/q), due to a slower-than-expected recovery of HDD supply and weakness from mobile customers in China. While the Jan quarter is likely the bottom for sales, we expect a slow recovery in drives due to weak underlying PC demand and share loss. In addition, we would expect modest growth in wireless this year. TD volumes are weak, but on top of that we think Marvell will lose market share in TD-SCDMA to Spreadtrum (Nasdaq: SPRD). We are lowering our estimates from $800mn/$0.18 to $740mn/$0.14 in FQ4 and from $3.6bn/$0.90 to $3.3bn/$0.80 in CY12. The stock trades at 20x CY12E EPS of $0.80 and 13x excluding $4 in net cash."

For an analyst ratings summary and ratings history on Marvell click here. For more ratings news on Marvell click here.

Shares of Marvell closed at $15.79 yesterday.

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