Sprouts Farmers Market closes $600 million revolving credit facility
Friday - Needham analysts have adjusted their price target on Marvell (NASDAQ:MRVL) stock, decreasing it to $85 from the previous target of $100, while still maintaining a Buy rating on the company’s shares. Currently trading at $63.73, Marvell’s stock sits below InvestingPro’s Fair Value estimate, with analyst targets ranging from $60 to $133. The revision reflects a more cautious outlook due to tariff uncertainties and a conservative stance in the firm’s discounted cash flow (DCF) model.
The new price target comes after Ambarella (NASDAQ:AMBA) reported first-quarter results for fiscal year 2026 that were above the midpoint of expectations and provided a second-quarter forecast that surpassed Wall Street’s projections. With a market capitalization of $55 billion and revenue growth of 21.6% in the last twelve months, Marvell shows strong momentum. Needham’s analysis highlighted several key points from the earnings report: an anticipated revenue growth for fiscal year 2026 between 19% to 25% year-over-year, as opposed to the previously guided mid-to-high teens percentage growth. InvestingPro data reveals 11+ additional insights about Marvell’s growth prospects and financial health.
The analysts noted that Marvell’s serviceable available market (SAM) is expanding beyond endpoint devices to include edge infrastructure. Management has disclosed ongoing development of next-generation processors aimed at further penetrating the edge infrastructure market. This strategic move is seen as a significant step for Marvell, signaling a pivot towards more diversified market opportunities. Despite operating with a moderate level of debt, the company maintains a "Fair" overall financial health score according to InvestingPro’s comprehensive analysis.
Additionally, the company’s revenue sources are becoming more varied. Security cameras now represent less than half of the total revenue, while automotive-related sales account for approximately 25%. The remaining 30% to 35% of revenue comes from consumer-facing markets, indicating a shift from Marvell’s traditional reliance on security camera products. With total revenue reaching $6.5 billion and a gross profit margin of 48.7%, the company demonstrates solid operational performance.
In their commentary, Needham analysts acknowledged the potential impact of tariff uncertainty on the second half of fiscal year 2026, which has been factored into the updated guidance. The lowered price target to $85 from the previous $110 is a result of incorporating these more conservative assumptions into Needham’s DCF model. Despite the reduction in price target, the firm’s Buy rating suggests a continued positive outlook on Marvell’s stock performance.
In other recent news, Marvell Technology Group Ltd . has reported earnings that slightly exceeded consensus estimates, achieving revenues of $1.89 billion and earnings per share (EPS) of $0.62. The company has also provided guidance above expectations, projecting $2.0 billion in revenue and $0.67 EPS for the upcoming period. Rosenblatt Securities maintained a Buy rating with a $124 price target, highlighting Marvell’s revenue growth driven by AI Data Center operations and improvements in other segments. Cantor Fitzgerald reiterated a Neutral rating with a $60 price target, acknowledging Marvell’s leadership in several technology areas but expressing concerns about potential competition and its impact on gross margins.
Oppenheimer continues to rate Marvell as Outperform, setting a $95 price target, and noted the company’s strong partnerships with Amazon (NASDAQ:AMZN) Web Services and its progress with advanced technology products. Barclays (LON:BARC) reaffirmed an Overweight rating with an $80 price target, emphasizing Marvell’s work with 3nm technology and its collaborations with major tech firms like Amazon and Microsoft (NASDAQ:MSFT). The firm also mentioned Marvell’s active share repurchase strategy, which is expected to be supported by the sale of its automotive business later this year. These developments reflect Marvell’s strategic initiatives and its positioning in the semiconductor industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.