Stifel Reiterates Buy Rating on Marvell (February 11)
Stifel analyst Tore Svanberg reiterated a Buy rating and $114.00 price target on Marvell Technology (NASDAQ: MRVL).
“Model Impact: Below, we summarize for investors the impact to our financial model. On February 10, 2026, Marvell announced it had closed its ~$540mn acquisition of XConn Technologies, a provider of PCIe and CXL switch silicon aimed at bolstering Marvell’s UALink capabilities longer term.
As such, we are updating our financial model to incorporate the impact of the acquisition.
Maintain Buy and 12-month Target Price of $114, representing a 34.4x CY26E P/E multiple (10.2x CY26E EV/Sales). • We anticipate initial revenue contributions from XConn beginning in F3Q27E, ramping to a $50mn annualized run rate ($12.5mn/quarter) by F4Q27E. • We are increasing our FY28E revenue estimate by $100mn to reflect anticipated XConn contribution. • We are adjusting our NG OpEx estimates for FY27E by ~$25mn annually, with this figure growing in FY28E at the same rate as our prior projected NG OpEx estimate. • Due to the acquisition reducing MRVL’s cash balance by ~$325mn, we are decreasing the company’s Other Income by ~$12mn on an annual basis due to anticipated reduced interest income in future fiscal periods. • Starting in the Apr Q, we have increased our projected diluted weighted-average shares outstanding by approx.
2.7mn shares coinciding with the equity issued to complete the acquisition. • Net/net, we are adjusting our FY27E NG EPS estimate from $3.41 to $3.37, though our FY28E NG EPS estimate is being maintained at $4.90. • FY29E: We are adjusting our FY29E revenue estimate from $17.58bn to $17.73bn, and leaving our NG EPS estimate unchanged at $6.68.
That said, should the integration of XConn prove successful (contemplating potential tailwinds such as cross-selling), we believe there could be NG EPS upside.”
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