In a report released today, Quinn Bolton from Needham upgraded Marvell (NASDAQ: MRVL) to Buy, with a price target of $21. The company’s shares closed last Friday at $16.39, close to its 52-week high of $16.56.
Bolton said:
“Following Marvell’s inaugural analyst day, in which management laid out its strategy to grow revenue, further streamline operations and increase capital returns to shareholders, we are upgrading our rating to Buy from Hold and establishing a $21 PT . We are fans of the new management team, assembled from a variety of industry leaders. We believe MRVL can drive growth in its core storage, networking and connectivity markets through share gains, targeting market transitions and entering new market segments. NG EPS should continue to increase over the next three years as management drives the business toward its new 30% OM and 30% FCF margin targets.”
According to TipRanks.com, Bolton is a top 25 analyst with an average return of 21.3% and a 73.8% success rate. Bolton covers the Technology sector, focusing on stocks such as Sequans Communications S A, Integrated Device Tech, and Ikanos Communications.
Currently, the analyst consensus on Marvell is Moderate Buy and the average price target is $18.44, representing a 12.5% upside.
In a report issued on February 28, Credit Suisse also maintained a Buy rating on the stock with a $18 price target.
Based on Marvell’s latest earnings report for the quarter ending January 31, the company posted quarterly revenue of $571 million and GAAP net loss of $80.09 million. In comparison, last year the company earned revenue of $616 million and had a net profit of $4.2 million.
Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. Most recently, in December 2016, Sehat Sutardja, the CEO of MRVL sold 734,682 shares for a total of $10,419,890.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Marvell Technology Group Ltd. engages in the business of providing semiconductors to high-performance application-specific standard products. The company focuses on the development of complex System-on-a-Chip devices leveraging extensive technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing, and embedded and stand alone integrated circuits. Its product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceivers, mobile handsets, connectivity and other consumer electronics. The company was founded by Sehat Sutardja, Weili Dai and Pantas Sutardja in January 1995 and is headquartered in Hamilton, Bermuda.
The post Why did Needham Upgrade Marvell’s Stock? appeared first on Analyst Ratings.