Marvell price target raised to $95 from $80 at BofA

BofA raised the firm’s price target on Marvell to $95 from $80 and keeps a Buy rating on the shares. The Q4 report was inline, though the Q1 outlook was 16% below expectations due to sharp non-AI, legacy declines, the analyst tells investors. However, the “all-important” data center remains “solidly on track” and should grow nearly 80% year-over-year in the quarter, added the analyst, who notes that Marvell’s AI revenue made up more than 10% of total sales in FY24 and should reach nearly 30% in FY25. While lower volume and unfavorable product mix point to near-term margin headwinds, the firm now believes FY25 estimates are fully de-risked, BofA added.