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CFRA Reiterates Strong Buy Rating on Marvell (MRVL)

May 31, 2024 3:15 PM

CFRA analyst Angelo Zino reiterated a Strong Buy rating and $94.00 price target on Marvell (NASDAQ: MRVL).

The analyst commented, "We keep our 12-month target at $94 on P/E of 37.6x our CY 25 EPS view, above peers given our view of trough fundamentals. We adjust our FY 25 (Jan.) EPS view to $1.50 from $1.82 and FY 26 to $2.50 from $2.70. MRVL posts Apr-Q EPS of $0.24 vs. $0.31, matching the consensus. Sales fell 12%, near expectations, as 87% growth in data centers was more than offset by declines in consumer (-70%), carrier infrastructure (-75%), enterprise networking (-58%), and auto/industrial (-13%). We note that Jul-Q guide was largely in line (implies 8% seq. increase), as we believe the declines from cyclical businesses have largely run its course, with the worst of the customer inventory digestion in the rearview. In addition, MRVL is now poised to see a multi-year period of elevated growth, driven by its robust custom AI silicon pipeline (lower margins) and optics business. We see a favorable setup in the 2H and for CY 25, as sales in non-data center markets recover off a low base in enterprise networking, carrier, and autos."

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 $76.85 yesterday.

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