Cantor Fitzgerald maintains Marvell stock rating at Neutral on mixed outlook

Investing.com - Cantor Fitzgerald has reiterated its Neutral rating and $75.00 price target on Marvell Technology (NASDAQ:MRVL), a prominent player in the Semiconductors industry, following the company’s mixed quarterly results and guidance. According to InvestingPro data, the stock is currently trading near its Fair Value, with analysts maintaining a bullish consensus.

Marvell reported in-line July quarter results, but provided October quarter guidance that fell short of consensus revenue expectations at $2.06 billion versus the expected $2.11 billion, while projecting slightly better earnings per share at $0.74 compared to consensus estimates of $0.72. The company maintains strong financial health with a current ratio of 1.88, operating with moderate debt levels. InvestingPro analysis reveals 10+ additional key metrics and insights available for subscribers.

The company’s Data Center segment disappointed in the July quarter, with October guidance projecting flat quarter-over-quarter performance, approximately $94 million below consensus. Custom Silicon is expected to decline quarter-over-quarter, though management indicated it would grow half-over-half, suggesting a January quarter recovery to approximately $540 million.

Despite these challenges, Marvell’s core business is showing strong recovery, growing from an $1.8 billion annualized run-rate in April to an implied $2.3 billion in the October quarter guide, representing a 25% improvement. Management also highlighted 50 new AI opportunities across more than 10 customers and 18+ socket wins.

Cantor Fitzgerald expressed concerns about a potential slowdown in the first half of 2026 as Amazon’s program decelerates, with Microsoft ramping up only beginning in Q4 2026, making it difficult to validate Marvell’s target of 20% Data Center market share by 2028 without more detailed information on emerging hyperscale customer engagements.

In other recent news, Marvell Technology has been the focus of several analyst updates following its latest earnings report. Marvell’s fiscal second-quarter results were in line with expectations, though revenue projections for the third quarter have been a point of concern. Rosenblatt adjusted its price target for Marvell to $95, citing a mixed performance with revenue misses but better-than-expected earnings. KeyBanc maintained an Overweight rating with a $90 price target, despite noting challenges in Marvell’s data center segment due to fluctuations in AWS Trainium orders.

Melius Research lowered its price target to $70, expressing concerns over AI growth and a third-quarter guidance that fell short of market expectations. Needham reduced its target to $80, highlighting an anticipated decline in custom silicon revenue impacting future projections. Goldman Sachs also adjusted its price target to $72, maintaining a Neutral rating, and acknowledged Marvell’s results aligning with revenue expectations while noting a slight outperformance in margins and earnings per share. These developments reflect ongoing assessments of Marvell’s performance and future outlook by various financial firms.

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