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On Friday, Rosenblatt Securities affirmed its Buy rating and $124.00 price target for Marvell Technology Group Ltd . (NASDAQ:MRVL), which currently trades at $63.73 with a market capitalization of $55 billion. The firm’s analysts highlighted the company’s performance, noting a modest outperformance and upward adjustment in its financial outlook. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $60 to $133. Marvell’s revenue growth was attributed to robust demand in AI Data Center operations, as well as year-over-year improvements in Enterprise Networking/Carrier Infrastructure and Consumer segments. InvestingPro data reveals impressive revenue growth of 21.6% in the last twelve months, with analysts forecasting 42% growth for the current fiscal year.
The management at Marvell Technology addressed rumors concerning the potential loss of traction in their custom ASIC segment. They clarified their ongoing engagement with an existing customer for the next generation of an XPU product. Additionally, Marvell has secured essential resources for future growth, including three nanometer wafer and advanced packaging capacity slated for 2026 production.
Analysts at Rosenblatt perceive the custom ASIC total addressable market (TAM) as rapidly expanding, with Marvell well-positioned to capitalize on new opportunities. The analysts emphasized the importance of securing programs with significant revenue potential and expressed confidence in Marvell’s ability to sustain and grow its custom ASIC business.
Rosenblatt has made slight adjustments to their fiscal year 2026 estimates for Marvell, while fiscal year 2027 projections remain steady. They underscored the company’s custom ASIC business as a consistent growth factor with minimal volatility. The analysts also recognized Marvell as a frontrunner in the custom AI ASIC market, expected to achieve market share gains in the forthcoming years.
The $124 price target set by Rosenblatt is based on a 31 times price-to-earnings (P/E) multiple applied to their estimated non-GAAP earnings per share for fiscal year 2027. While currently trading at an EV/EBITDA multiple of 33.4x, InvestingPro analysis suggests the stock is slightly undervalued based on its proprietary Fair Value model. InvestingPro subscribers have access to over 10 additional key valuation metrics and insights, along with a comprehensive Pro Research Report that provides deep-dive analysis of Marvell’s financial health and growth prospects.
In other recent news, Marvell Technology Group Ltd. reported earnings that slightly exceeded consensus estimates, with revenues of $1.89 billion and earnings per share (EPS) of $0.62, surpassing the anticipated $1.88 billion and $0.61 EPS. The company provided guidance above expectations, forecasting $2.0 billion in revenue and $0.67 EPS for the next quarter. Marvell’s collaboration with Amazon (NASDAQ:AMZN) on 3-nanometer technology is progressing, with wafer capacity secured and expected to ramp up in 2026. Analysts have shown varied perspectives on Marvell’s stock, with Cantor Fitzgerald maintaining a Neutral rating, Oppenheimer reiterating an Outperform rating with a $95 target, and Barclays (LON:BARC) maintaining an Overweight rating with an $80 target. BofA Securities also confirmed a Buy rating with a $72 target, highlighting Marvell’s strategic projects with Amazon and Microsoft (NASDAQ:MSFT). Concerns remain about potential competition and market share dynamics in the ASIC segment. Marvell is actively repurchasing shares and plans to sell its automotive business later this year. Analysts are looking forward to more insights during Marvell’s Custom AI investor event on June 17, 2025.
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