Marvell Receives a Buy from Oppenheimer

By Ryan Adsit

In a report released yesterday, Rick Schafer from Oppenheimer assigned a Buy rating to Marvell (NASDAQ: MRVL), with a price target of $30. The company’s shares closed yesterday at $21.54.

Schafer wrote:

“We’re raising estimates after Marvell reported typical beat/raise F1Q (April) results. Sales/EPS of $605M/$0.32 topped consensus $602M/$0.31. F2Q (July) outlook was mixed, with sales/EPS expected at $615M/$0.34 vs. Street $621M/$0.33. Mgmt delivered EPS upside despite a $7M headwind from the ZTE embargo. Strength was led by core of revs). GM increased 190bps Y/Y and is expected up 230bps on favorable product mix and cost improvements. Mgmt sees the accretive/strategic CAVM deal on track to close mid-year. All reg approvals have been granted except MOFCOM. We like the deal, as it bolsters MRVL’s exposure to high-end datacenter/networking and doubles MRVL’s TAM. We reiterate our Outperform and $30 price target.”

According to, Schafer is a top 100 analyst with an average return of 16.8% and a 72.4% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as NXP Semiconductors, Skyworks Solutions, and Texas Instruments.

Currently, the analyst consensus on Marvell is Strong Buy and the average price target is $27.86, representing a 29.3% upside.

In a report issued on May 21, B.Riley FBR also reiterated a Buy rating on the stock with a $30 price target.

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Based on Marvell’s latest earnings release for the quarter ending January 31, the company reported a quarterly net profit of $48.76 million. In comparison, last year the company had a net profit of $98.47 million.

Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock.

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Marvell Technology Group Ltd. engages in the business of providing semiconductors to high-performance application-specific standard products. It 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.