CFRA Maintains Strong Buy Opinion On Shares Of Marvell Technology, Inc.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We up our 12-month target price to $94 from $84 on a higher revised P/E of 34.8x our CY 25 EPS view, above peers but within five-year historical forward average. We adjust our FY 25 (Jan.) EPS view to $1.82 from $2.31 and FY 26 to $2.70 from $2.79. MRVL posts Jan-Q EPS of $0.46 vs. $0.46, matching the consensus. Although MRVL again provided disappointing guidance, we finally believe non data center markets are set to bottom in the Apr-Q at extremely depressed levels, with steeper seq. declines in carrier (-50%), enterprise networking (-40%), and consumer (-70%). All end-markets are poised to recover thereafter. AI-related revenue drove data center upside, up 54% (+38% seq.), and we think its pipeline offers upside given opportunities tied to its Optics business (over $200M revenue in Jan-Q) as well as initial revenue ramp from its silicon compute customers (we see potential to exceed Optics over time). Favorable mix/cost efficiencies are supporting margins, while its AI Era event on 4/11 could be a catalyst.

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