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Investing.com - Rosenblatt has lowered its price target on Marvell (NASDAQ:MRVL) to $95.00 from $124.00 while maintaining a Buy rating on the semiconductor company’s stock. The new target remains well within the broader analyst range of $64.31 to $133, with InvestingPro data showing a strong consensus rating of 1.56 (Strong Buy).
The price target reduction follows what Rosenblatt described as a "mixed report" from Marvell, with the company missing revenue expectations but beating bottom-line forecasts.
The primary factor behind the adjustment was a delay in Data Center ASIC shipments, which have been pushed from October to January, impacting near-term revenue projections.
Rosenblatt also cited the company’s automotive business divestiture as a reason for lowering FY27 revenue estimates, though the firm remains optimistic about Marvell’s future prospects.
Despite the reduced price target, Rosenblatt maintained its Buy rating based on Marvell’s pipeline of 18 new ASICs coming to market and 50 other opportunities, which the firm expects will help reduce the company’s customer concentration.
In other recent news, Marvell reported fiscal second-quarter results and third-quarter guidance that aligned with expectations, taking into account the company’s divestiture of its automotive Ethernet segment. Despite this, the data center segment underperformed and is expected to decline in the third quarter due to irregularities in AWS Trainium orders. KeyBanc has maintained its Overweight rating on Marvell with a $90 price target, despite these challenges. Meanwhile, Melius Research has lowered its price target to $70, citing AI growth concerns following Marvell’s third-quarter guidance, which fell short of market expectations by approximately 5%.
Needham has also adjusted its price target to $80 from $85, maintaining a Buy rating, due to anticipated declines in custom silicon revenue. Goldman Sachs has reduced its price target to $72 while keeping a Neutral rating, noting that Marvell’s results and guidance met revenue expectations but exceeded on margins and earnings per share. Jefferies has lowered its price target to $80 from $90, maintaining a Buy rating, and highlighted a temporary setback in Marvell’s ASIC business due to "customer lumpiness," with expectations for recovery in the fourth quarter. These developments reflect a mixed outlook for Marvell, as analysts weigh the company’s recent performance and future prospects.
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