After the investor day presentation, analysts raised their price targets on Marvell Technology Inc (NASDAQ: MRVL), claiming an upside up to 50%.
Rosenblatt analyst Hans Mosesmann maintained with a Buy and raised the PT from $85 to $100, implying an upside of 50%.
B. Riley analyst Craig Ellis raised the PT to $83 from $75, implying a 24% upside, and reiterated a Buy. The analyst says the company offered a “much higher” intermediate- to the long-term growth rate.
Jefferies analyst Mark Lipacis raised the PT to $82 from $78, implying a 23% upside, and affirmed a Buy.
He estimates CY24 and CY26 EPS power of $3.11 and $4.51, respectively, based on the new target model articulated at the event.
KeyBanc analyst John Vinh raised the PT to $80 from $70, implying a 20% upside, to reflect the new long-term growth rates while keeping an Overweight.
Increased focus on optimizing cloud data center growth solutions, emphasis on auto, cloud, and 5G, and expansion into autonomous compute processors, representing a $5.3 billion TAM drive the growth.
Craig-Hallum analyst Christian Schwab upgraded to Buy from Hold with a PT of $85, up from $63, implying a 27% upside.
Schwab points out that partially driving the shift from a consumer products company to a data infrastructure company was due to the multiple transformational acquisitions strengthening its position in leading growth markets, including cloud datacenters, 5G, and automotive.
Credit Suisse analyst John Pitzer affirmed with an Outperform and raised the PT from $70 to $85.
Needham analyst N. Quinn Bolton raised the PT to $75 from $69, implying a 12% upside, and reiterated a Buy.
Bolton cites the company’s analyst day presentation calling for “significant growth opportunities associated with cloud-optimized silicon.”
Bolton adds that given the design wins secured with its 5nm technology platform and market share gains.
Marvell expects to outgrow its serviceable addressable market while also boosting its revenue growth rate to 15%-20%, which is “one of the highest growth rates in large-cap semis.”
Morgan Stanley analyst Joseph Moore raised the PT to $63 from $61, and maintained an Equal Weight.
The company raised long-term growth estimates slightly, but with no change in long term margin targets and “few new design wins,” according to Moore, who adds that he was “surprised at the move in the stock price, as there really wasn’t much new information” from the event.
Cowen analyst Karl Ackerman raised the PT to $66 from $57 and maintained a Market Perform.
The analyst noted the company had transformed its portfolio toward becoming a preeminent supplier of custom and leading-edge silicon addressing data center networking storage and carrier infrastructure markets that many seem to appreciate already.
Price Action: MRVL shares traded higher by 4.36% at $66.54 on the last check Thursday.
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