Marvell Receives a Buy from Loop Capital MarketsBy Carrie Williams
Loop Capital Markets analyst Betsy Van Hees reiterated a Buy rating on Marvell (NASDAQ: MRVL) on March 13 and set a price target of $20. The company’s shares closed yesterday at $16, close to its 52-week high of $16.72.
Van Hees wrote:
“We attended Marvell Technology Group, LTD’s (MRVL) first ever analyst day in NYC on Friday, March 10 and despite the inclement weather it was very well attended. MRVL remains one of our favorite mid-cap ideas for 2017 and we came away from the analyst day with increased confidence in the story. We believe management hit all the right notes outlining the revenue growth drivers across the breadth of its businesses, levers in the model to drive continued improvements to GM and OM, and a solid capital allocation strategy. In addition to MRVL providing a much anticipated long-term model, MRVL guided full year F2018 revenue outlook to be up slightly YoY vs. the Street estimate of down -1% YoY and pulled in and tightened the range for both pro forma gross margin and OpEx in F2018.”
According to TipRanks.com, Hees is a 5-star analyst with an average return of 21.7% and a 63.0% success rate. Hees covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Integrated Device Tech, and Texas Instruments.
Currently, the analyst consensus on Marvell is Moderate Buy and the average price target is $18.67, representing a 16.7% upside.
In a report issued on February 28, Credit Suisse also maintained a Buy rating on the stock with a $18 price target.
Based on Marvell’s latest earnings report for the quarter ending January 31, the company posted quarterly revenue of $571 million and GAAP net loss of $80.09 million. In comparison, last year the company earned revenue of $616 million and had a net profit of $4.2 million.
Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. Most recently, in December 2016, Sehat Sutardja, the CEO of MRVL sold 734,682 shares for a total of $10,419,890.
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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.