Needham & Company LLC Reiterates Buy Rating for Marvell Technology Group (MRVL)
Needham & Company LLC reiterated their buy rating on shares of Marvell Technology Group (NASDAQ:MRVL) in a research report sent to investors on Wednesday morning, Marketbeat Ratings reports. They currently have a $25.00 target price on the semiconductor company’s stock, down from their previous target price of $27.00.
“MRVL reported in-line results for the combined company’s first full quarter. Storage revenue was in line with expectations while Networking was better than expected, driven by MRVL’s switch/PHY products and OCTEON processors. However, F4Q19 guidance fell below expectations due to a weak outlook for Storage and WiFi, partially mitigated by LSD Q/Q growth in Networking. MRVL expects Storage to remain soft for several quarters as customers work through excess inventory. While we remain buyers of MRVL given its attractive valuation and growth opportunities in the Infrastructure markets, we are lowering our estimates and PT to $25, which is 15x our CY20 NG EPS estimate, to reflect the near term softness in the Storage business.”,” the firm’s analyst wrote.
A number of other equities research analysts have also recently weighed in on MRVL. Benchmark dropped their price target on Marvell Technology Group to $30.00 in a report on Sunday. Stifel Nicolaus upgraded Marvell Technology Group from a hold rating to a buy rating and set a $21.00 price target on the stock in a research report on Friday, October 12th. B. Riley dropped their price objective on Marvell Technology Group from $30.00 to $26.00 and set a buy rating on the stock in a research note on Wednesday, October 10th. Goldman Sachs Group assumed coverage on Marvell Technology Group in a research note on Tuesday, September 18th. They set a buy rating and a $23.00 price objective on the stock. Finally, Rosenblatt Securities reissued a buy rating and issued a $27.00 price target on shares of Marvell Technology Group in a research note on Sunday, September 9th. Two equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and seventeen have issued a buy rating to the stock. The company presently has an average rating of Buy and an average price target of $24.44.
Marvell Technology Group (NASDAQ:MRVL) last posted its quarterly earnings results on Tuesday, December 4th. The semiconductor company reported $0.33 EPS for the quarter, beating the consensus estimate of $0.32 by $0.01. The firm had revenue of $851.05 million during the quarter, compared to analysts’ expectations of $844.07 million. Marvell Technology Group had a return on equity of 10.43% and a net margin of 4.76%. The company’s revenue for the quarter was up 38.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.34 EPS. On average, research analysts predict that Marvell Technology Group will post 0.86 earnings per share for the current year.
Marvell Technology Group announced that its board has approved a stock repurchase program on Tuesday, October 16th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the semiconductor company to buy up to 7.9% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board of directors believes its stock is undervalued.
Several hedge funds and other institutional investors have recently modified their holdings of MRVL. Nelson Van Denburg & Campbell Wealth Management Group LLC purchased a new position in shares of Marvell Technology Group during the second quarter valued at approximately $117,000. MUFG Americas Holdings Corp purchased a new stake in Marvell Technology Group during the second quarter valued at approximately $120,000. Commonwealth Bank of Australia increased its stake in shares of Marvell Technology Group by 1,142.9% in the second quarter. Commonwealth Bank of Australia now owns 8,700 shares of the semiconductor company’s stock worth $185,000 after purchasing an additional 8,000 shares in the last quarter. Cerebellum GP LLC purchased a new stake in shares of Marvell Technology Group in the third quarter worth $183,000. Finally, K2 Principal Fund L.P. purchased a new stake in shares of Marvell Technology Group in the second quarter worth $207,000. Hedge funds and other institutional investors own 95.31% of the company’s stock.
About Marvell Technology Group
Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a range of storage products, including hard disk drive (HDD) and solid-state drive controllers, as well as HDD components, such as HDD preamps components; and develops software-enabled silicon solutions comprising serial advanced technology attachment port multipliers, bridges, serial attached SCSI, and non-volatile memory express redundant array of independent disks controllers and converged storage processors for enterprises, data centers, and cloud computing businesses.
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