MKM Partners Thinks Marvell’s Stock is Going to Recover

By Ryan Adsit

In a report released today, Ruben Roy from MKM Partners maintained a Buy rating on Marvell (NASDAQ: MRVL), with a price target of $27. The company’s shares closed yesterday at $17.38, close to its 52-week low of $17.37.

Roy noted:

“We believe that updates on the Cavium business, both near and longer-term, coupled with a fresh perspective on longer-term growth drivers and operational targets, could provide a bit of a catalyst to MRVL shares. While we are not changing our estimates at this time, we are lowering our price target to $27 from $30. Our new price target is based on an 18x multiple on our fiscal 2020 EPS estimate of $1.50.”

According to, Roy is a 4-star analyst with an average return of 7.0% and a 53.6% success rate. Roy covers the Consumer Goods sector, focusing on stocks such as Skyworks Solutions, Maxim Integrated, and Cypress Semicon.

Currently, the analyst consensus on Marvell is a Strong Buy with an average price target of $27.60, implying a 58.8% upside from current levels. In a report released yesterday, B.Riley FBR also maintained a Buy rating on the stock with a $26 price target.


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The company has a one-year high of $25.18 and a one-year low of $17.37. Currently, Marvell has an average volume of 9.79M.

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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. The company’s product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceivers, mobile handsets, connectivity and other consumer electronics. Marvell Technology Group was founded by Sehat Sutardja, Weili Dai, and Pantas Sutardja in January 1995 and is headquartered in Hamilton, Bermuda.