In a report released yesterday, Joshua Buchalter from TD Cowen maintained a Buy rating on Marvell, with a price target of $90.00.
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Joshua Buchalter has given his Buy rating due to a combination of factors that highlight Marvell’s potential for growth despite some short-term challenges. The company is experiencing strong momentum in its datacenter segment, which has seen a significant year-over-year increase. Although there is some concern about the sequential decline in custom silicon expected in the October quarter, there is optimism for growth in the following quarter, which could be driven by increased demand for existing products and potential new engagements.
Management’s confidence in long-term opportunities is another reason for the positive outlook. They have been focused on achieving targets set during a recent AI investor webinar and have added several design wins since then. If Marvell can capture a significant market share of its total addressable market, it could lead to substantial earnings per share growth by 2028, a potential that is not currently reflected in the stock price. This long-term potential, coupled with existing strengths, supports the Buy rating.