Rosenblatt initiates coverage on Marvell (NASDAQ: MRVL) with a Buy rating and a price target of $27.00.

Analyst Hans Mosesman is positive on the company as a pure-play focused on key areas of storage and networking markets. He believes the company can outpace semiconductor industry growth "by a few points." The analyst comments also "With the highly desirable pending acquisition of Cavium, gross margins in the low 60’s, and a FCF policy of a 50% return to shareholders, the shares in our opinion are attractive at current levels."

Mosesman praises the strong, no-debt balance sheet.

The analyst sees the company's deep signal expertise and system knowledge in storage/networking as key while the company pushes into cloud/infrastructure markets which will enable MRVL to outgrow the low-single digit sale growth for the industry.

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 $20.20 yesterday.