Marvell stock price target lowered to $72 from $75 at Goldman Sachs

Investing.com - Goldman Sachs lowered its price target on Marvell (NASDAQ:MRVL) to $72.00 from $75.00 on Friday, while maintaining a Neutral rating on the semiconductor company’s stock. According to InvestingPro data, Marvell currently trades at high EBIT and EBITDA multiples, with the stock showing strong momentum over the last three months with a 5.79% return.

The firm cited Marvell’s in-line quarterly results and guidance that matched Street expectations on revenue but came in modestly above on margins and earnings per share. The company maintains a healthy gross profit margin of 49.59% and generated $1.38 billion in levered free cash flow over the last twelve months.

Goldman Sachs noted that investor expectations were likely low heading into the earnings report, with cautious positioning, but pointed to a lack of revenue upside in the guidance reflecting limited near-term traction for Marvell’s Datacenter custom silicon products.

The investment bank indicated that Marvell’s stock performance going forward will likely depend on the scale of its custom compute ramp in 2026.

Goldman maintained its Neutral stance, suggesting Marvell may gain limited traction through 2026 due to content loss at its largest silicon customer, Amazon, ahead of an anticipated product ramp with Microsoft.

In other recent news, Marvell Technology Inc. reported strong financial results for the second quarter of fiscal year 2026, with revenue reaching $2.006 billion, a 58% increase compared to the previous year. The company’s non-GAAP earnings per share were reported at $0.67, aligning with market expectations. Despite these positive results, Marvell provided mixed guidance for October, with revenue projections falling slightly below expectations due to the exclusion of its recently sold automotive business. However, earnings per share guidance was slightly above forecasts.

In related developments, Jefferies adjusted its price target for Marvell from $90 to $80, citing a temporary setback in the company’s ASIC business caused by "customer lumpiness." The firm still maintains a Buy rating, expecting recovery in the fourth quarter. Meanwhile, Piper Sandler upheld its Overweight rating and an $85 price target, acknowledging the mixed guidance but remaining optimistic about Marvell’s prospects. These recent developments highlight the dynamic environment in which Marvell operates, with analysts maintaining a generally positive outlook despite some short-term challenges.

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