Cowen Says Marvell Technology (MRVL) is Stuck in 'Purgatory' Following Auditor Resignation; Cuts Price Target to $11.50

Cowen maintained an Outperform rating on Marvell (NASDAQ: MRVL), and cut the price target to $11.50 (from $14.00), after PwC, its auditor for at least 15 yrs, has unexpectedly resigned. PwC cited that it would need to expand the scope of the 2016 audit to include areas such as corporate governance and controls, establishment of reserves for litigation/royalties, related party transactions, assignment of IP rights, and adequacy/expertise of financial reporting resources.

Analyst Timothy Arcuri commented, "Adding to an already bad situation, PwC unexpectedly resigning as auditor. While to a large degree we don't know what we don't know and no monetization (breakup, sale, etc.) can happen w/o an auditor, this seems like the seminal event that finally drives management out, ultimately catalyzing a breakup of the assets. Tgt to $11.50, but realize stock likely remains in purgatory near/medium-term."

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 $9.45 yesterday.

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