Marvell stock price target raised to $95 from $80 at Needham on growth outlook

Investing.com - Needham raised its price target on Marvell (NASDAQ:MRVL) to $95 from $80 on Thursday, while maintaining a Buy rating on the semiconductor company’s stock. According to InvestingPro data, the stock is currently trading near its Fair Value, with 21 analysts recently revising their earnings expectations upward.

The price target increase follows comments made by Marvell CEO Matt Murphy during a competitor’s fireside chat on Wednesday, where he addressed investor concerns about the company’s custom silicon business.

Murphy confirmed there should be no revenue gap in custom silicon next year, specifically at Amazon Web Services (AWS), and provided target growth rates for the Data Center segment and its sub-segments for fiscal year 2027.

According to Murphy, Marvell’s Data Center business is expected to grow in line with hyperscaler capital expenditure at approximately 18% year-over-year in FY27, with the Optics sub-segment outpacing that growth rate, custom silicon growing in line, and other emerging segments growing at double-digit rates.

The Marvell CEO also highlighted opportunities in scale-up network connections, noting that the company is well positioned to capitalize on these developments in the data center market. With a strong financial health score and liquid assets exceeding short-term obligations, Marvell appears well-equipped to execute on these opportunities. Get deeper insights and access to 13 additional exclusive ProTips with InvestingPro.

In other recent news, Marvell Technology announced a $5 billion stock repurchase program, including a $1 billion accelerated share repurchase agreement with a financial institution. Additionally, the company has already repurchased $300 million of its common stock in the current quarter. This move is part of Marvell’s ongoing strategy to return capital to stockholders. In related developments, UBS lowered its price target for Marvell to $95, citing weakness in the data center segment, although it maintained a Buy rating. TD Cowen also reiterated its Buy rating, expressing concerns over the custom silicon business but noted potential growth in the January quarter. Evercore ISI adjusted its price target to $122, maintaining an Outperform rating, following Marvell’s earnings report that met expectations and slightly exceeded earnings per share guidance for the October quarter. These recent developments highlight various analyst perspectives and Marvell’s strategic financial maneuvers.

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