Marvell Receives a Sell from Merrill Lynch

By Carrie Williams

Merrill Lynch analyst Vivek Arya reiterated a Sell rating on Marvell (NASDAQ: MRVL) today and set a price target of $11.75. The company’s shares opened today at $14.63, close to its 52-week high of $14.79.

According to TipRanks.com, Arya is a 5-star analyst with an average return of 15.0% and a 57.0% success rate. Arya covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Integrated Device Tech, and M/A-Com Technology.

Currently, the analyst consensus on Marvell is Hold and the average price target is $15.03, representing a 2.7% upside.

In a report released today, Citigroup also downgraded the stock to Sell.

Based on Marvell’s latest earnings report for the quarter ending October 31, the company posted quarterly revenue of $654 million and quarterly net profit of $72.62 million. In comparison, last year the company earned revenue of $675 million and had a GAAP net loss of $57.75 million.

Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is negative on the stock.

Marvell Technology Group Ltd. engages in the business of providing semiconductors to high-performance application-specific standard products. The company focuses on the development of complex System-on-a-Chip devices leveraging extensive technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing, and embedded and stand alone integrated circuits. Its product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceivers, mobile handsets, connectivity and other consumer electronics. The company was founded by Sehat Sutardja, Weili Dai and Pantas Sutardja in January 1995 and is headquartered in Hamilton, Bermuda.