Shares of Marvell Technology Inc (NASDAQ:MRVL) fell in early trading on Thursday, despite the company’s upbeat first-quarter report.
Here are the key analyst insights:
- Rosenblatt Securities analyst Kevin Cassidy reiterated a Buy rating, while raising the price target from $190 to $240.
- BofA Securities analyst Vivek Arya maintained a Buy rating, and raised the price target from $200 to $240.
- KeyBanc Capital Markets analyst John Vinh reaffirmed an Overweight rating, while taking the price target higher from $130 to $260.
- Benchmark analyst Cody Acree reaffirmed a Buy rating, and raised the price target from $130 to $275.
- Needham analyst Quinn Bolton reiterated a Buy rating, and raised the price target higher from $118 to $270.
- JPMorgan analyst Harlan Sur reiterated an Overweight rating, and raised the price target from $135 to $240.
Check out other analyst stock ratings.
Rosenblatt Securities: Marvell's revenue grew 9% sequentially and 27.6% year-on-year to $2.42 billion, Cassidy said in a note. Non-GAAP gross margin contracted by 10 basis points (bps) sequentially and by 90 bps year-on-year to 58.9%, resulting in non-GAAP earnings of 80 cents per share, he added.
Management raised its revenue growth outlook for fiscal 2027 to more than 40%, and for fiscal 2028 to more than 45%, the analyst stated. He noted, however, that both the quarterly beat and the raised guidance were "somewhat muted," due to higher operating expenses, share dilution from the Celestial AI acquisition, and gross margin headwinds from the Custom AI ASIC ramp.
BofA Securities: Naming Marvell as the top pick in the sector, Arya said that the company's broad AI portfolio is expected to ramp through fiscal 2027 and 2028. The company raised its sales guidance for the two years from $11 billion to $11.5 billion and from $15 billion to $16.5 billion, respectively. This reflects ongoing growth in its optics business.
Management also expects custom compute to grow to $10 billion in fiscal 2029, the analyst stated. "Its unique accelerating growth franchise arguably has the broadest breadth of premium IP across compute, CPU, accelerators/LPU, networking, optics/CPO, memory/storage (incl. emerging CXL standard) and security," he further wrote.
KeyBanc Capital Markets: Marvell's revenues of $2.42 billion narrowly beat the consensus of $2.41 billion. Earnings of 80 cents per share came in-line with expectations, Vinh said. The company's guidance reflects data center growth of 50% in fiscal 2027 and 55% in fiscal 2028, he added.
Management expects total revenues to reach $3 billion in the third quarter, versus their earlier projection for the fourth quarter, the analyst stated. They raised their revenue outlook for fiscal 2027 and 2028 to reflect "AI-related demand strength," he further wrote.
Benchmark: Marvell's first-quarter results were broadly in-line with expectations and its second-quarter guidance upside was modest, Acree said. The stock came under pressure following the results, as it had appreciated around 26% over the past month and 126% over the past six months, he added.
Data Center revenues of $1.833 billion and Communications revenue of $585 million beat Street expectations of $1.814 billion and $573 million, respectively, the analyst stated. Marvell expects Data Center to grow approximately 50% in FY27 and 55% in FY28, while Communications and Other remains a smaller stabilizer.
Needham: Marvell projected its second-quarter revenues to grow in double digits sequentially, Bolton said. The company expects this growth to continue both in the third and fourth quarters.
Revenues should reach $3 billion in the third quarter, "one full quarter ahead of its prior outlook," he added.
JPMorgan: Marvell delivered strong quarterly results, although they were broadly in-line with expectations, Sur said. The performance was driven by "accelerating data center demand — with growth across all key product lines (optical, switching, ASICs, storage) — and continued gradual recovery in Communications /Other segments," he wrote.
Management guided to revenues of $2.7 billion in the second quarter, higher than consensus of $2.6 billion, "reflecting sustained strong data center growth," the analyst stated. Moreover, they expect 10% or greater sequential growth for the remainder of the fiscal year, implying that the company would exit fiscal 2027 with a quarterly revenue run-rate of around $3.4 billion, he further noted.
MRVL Price Action: Shares of Marvell Technology had declined by 1.33% to $196.05 at the time of publication on Thursday.
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