Raymond James Reiterates Strong Buy Rating on Marvell

Raymond James analyst Simon Leopold reiterated a Strong Buy rating and $125.00 price target on Marvell Technology (NASDAQ: MRVL).

“Strong Buy rated Marvell announced its intent to acquire XConn, a provider of PCIe and CXL switching silicon and UALink tech expertise to complement Marvell’s existing product portfolio for $540M in cash and stock.

We regard the deal favorably, though it does suggest that Marvell’s product portfolio was behind and this was required to catchup.

XConn can expand Marvell’s market and complements its xPU/ASIC offerings.

As a reminder, our thesis was predicated on an underappreciated ASIC business and stickiness of pluggable re-timed optical transceivers, not the PCIe/UALink switch/retimer success.

XConn is an early stage company; we are not adjusting Marvell estimates now.”

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