UBS Cuts Price target on Marvell Technology (MRVL) Given Additional Details on Delayed 2Q16 Results

UBS reiterated a Neutral rating on Marvell (NASDAQ: MRVL), and cut the price target to $9.10 (from $14.00) given the release of additional details surrounding the company's delayed 2Q16 results. Marvell published preliminary F2Q16 revenues of $711M that included approximately $50M of revenues primarily related to storage/HDD controllers.

Analyst Stephen Chin commented, "We maintain a Neutral view on Marvell given additional details released on its delayed F2Q16 results release and 10Q filing. Marvell published preliminary F2Q16 revenues of $711M that included approx. $50M of revenues primarily related to storage/HDD controllers. The company suggested this $50M in storage revenues were shipped in the quarter, although the timing of the order could or should be classified as F3Q16 revenue, and this is the basis for the ongoing review of internal accounting and internal control processes. We note that without the additional $50M in F2Q revenues, the company would have missed the original sales outlook of $710-740M due to further declines in HDD controller demand. Given that the preceding four quarters of storage revenues have been progressively weaker due to soft PC shipments globally, we believe the timing of the F2Q shipments in a period where PC unit demand remained tepid could also raise concerns about premature inventory build-up."

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 $8.84 yesterday.

You May Also Be Interested In

• Bristol-Myers Squibb Co. (BMY) PT Lowered to $64 at Truist Securities
• Zhongji Innolight Co Ltd (300308:CH) PT Raised to RMB223.80 at HSBC
• Acrivon Therapeutics Inc (ACRV) PT Lowered to $22 at Jones Trading