CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We boost our 12-month target to $84 from $70 on a revised P/E of 30x our CY 25 EPS view, above peers but below historical. We keep our FY 24 (Jan.) EPS view at $1.51, FY 25 at $2.31, and FY 26 at $2.79. Ahead of Jan-Q results set for after the close on 3/7, we look for revenue of $1.42B and EPS of $0.46 (flat for both Y/Y). All eyes will of course be on AI revenue, which is largely driving growth for its data center segment (half of total sales). We note AI revenue appears on pace to blow through its previously guided FY 25 run rate of $800M, on greater momentum from both its optics and custom silicon solutions (about half of total from each). Importantly, the other half of MRVL’s sales has been heavily pressured over the last year, with sharp declines in enterprise networking, carrier, and storage. Yet, customer inventories across these areas appear more normalized, which supports a cyclical recovery by mid-year. All said, a recovery in cyclical businesses plus strong AI momentum could drive notable upside.