RBC Capital Starts Marvell at Outperform

RBC Capital analyst Srini Pajjuri initiated coverage on Marvell Technology (NASDAQ: MRVL) with an Outperform rating and a price target of $105.00.

“The key debate is whether management’s outlook for 20%+/40% + Data Center growth in FY27/28 is achievable.

The company appears to have firm orders for AWS Trainium3 chip and the recent Celestial acquisition/warrant agreement suggest MRVL will remain a key ASIC supplier for Trainium4. MSFT ASIC appears on track, and management’s < $1b revenue target for FY28 looks conservative.

Optical business is on solid footing while Scale-up and custom SmartNICs represent underappreciated growth opportunities.

Valuation is at a 25% discount to peers, which we think makes risk/reward attractive. Initiate at Outperform.”

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