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Investing.com - KeyBanc has reiterated an Overweight rating and $90.00 price target on Marvell (NASDAQ:MRVL), a prominent player in the Semiconductors industry with a market capitalization of $67.2 billion, following the company’s recent quarterly results, despite weakness in its data center segment. According to InvestingPro data, the stock has shown strong momentum with a 10.95% return over the past year.
Marvell reported fiscal second quarter results and third quarter guidance that were in line with expectations when normalized for the company’s automotive Ethernet divestiture. While the data center segment missed expectations and is projected to decline in the fiscal third quarter, attributed to lumpiness in AWS Trainium orders, the company maintains strong fundamentals with impressive revenue growth of 37% and a healthy current ratio of 1.88, as reported by InvestingPro.
Despite this near-term weakness, Marvell’s Custom AI XPUs are expected to recover in the fiscal fourth quarter, with second-half fiscal 2025 revenues projected to exceed first-half results. The company also disclosed it had secured additional custom XPU wins since its AI event.
KeyBanc maintained its Overweight rating on Marvell stock, viewing the company as a continued beneficiary of artificial intelligence growth despite the disappointing performance in XPUs. The firm did not receive additional updates regarding the outlook for Trainium 3/4.
KeyBanc has lowered its fiscal year 2027 earnings per share forecast for Marvell to reflect a higher XPU mix, which brings lower gross margins, along with higher operating expenses. Despite current challenges, analysts maintain a strong buy consensus, with InvestingPro analysis revealing 13 additional key insights about Marvell’s financial health and growth prospects. Get access to the complete Pro Research Report for comprehensive analysis of what really matters about MRVL stock.
In other recent news, Marvell has been the subject of various analyst reviews following its latest financial guidance and results. The company reported fiscal second-quarter results that met expectations, but its third-quarter revenue guidance fell short, leading to several adjustments in stock price targets by analysts. Melius Research lowered its price target to $70, citing concerns about AI growth in Marvell’s Data Center business. Similarly, Needham reduced its target to $80 due to an anticipated decline in custom silicon revenue, though it maintained a Buy rating.
Goldman Sachs also adjusted its price target to $72, noting that while Marvell’s quarterly results were in line with expectations, the guidance for earnings per share was modestly above forecasts. Jefferies set its price target at $80, pointing out a temporary setback in Marvell’s ASIC business but expressing optimism about recovery in the fourth quarter. Meanwhile, Piper Sandler kept its Overweight rating and an $85 target, despite Marvell’s mixed guidance, emphasizing that the revenue miss was partly due to the sale of its automotive business. These developments highlight the varied perspectives among analysts regarding Marvell’s financial outlook.
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