UBS Reiterates Buy Rating on Marvell (March 6)

UBS analyst Timothy Arcuri reiterated a Buy rating and $120.00 price target on Marvell Technology (NASDAQ: MRVL).

“Against a high dose of skepticism, MRVL beat and offered out-year guidance that was better than Street expectations.

The ASIC business – which tends to command most of the investor focus (and skepticism)- is very much on track and expected to double next year, while MRVL’s strong position at 1.6T is driving additional growth on the interconnect side.

Fundamentally, we think the interconnect business is very much on track to materially outgrow hyperscaler capex and the ASIC business is maybe not great, but fine.

We are raising our C2027 EPS to ~$5.41 from $4.99 prior, but maintain our $120 PT as peer multiples have compressed to ~23x from ~24x.

Ultimately, we expect improving visibility on the MSFT program as we go through the year to support a multiple re-rating.”

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