Barclays Reiterates Equalweight Rating on Marvell (March 6)

Barclays analyst Tom O’Malley reiterated an Equalweight rating and $105.00 price target on Marvell Technology (NASDAQ: MRVL).

“The solid print the company needed after laying out the multi-year guide last quarter.

Optical is the major change, now >50% Y/Y (vs. prior 30%) and FY28 is tracking better than prior cloud capex guide.

Custom ASIC guidance implies ~$3.8B revenue in FY28 on our ests., including ~$1B of XPU attach, which leaves ~$2.8B between AMZN and MSFT.

Our view is that the guide bakes in some MSFT today (>$600M) with the rest coming from AMZN and there is nearly 3x upside to MSFT if orders come through.

Even assuming share loss at AMZN and little MSFT, the company is tracking towards $5 in EPS making the name cheap at these levels. AEC and retimer revenue at ~$200M and could “keep doubling” from here.

Execution has been a sticking point but if the company keeps lining up beats, we see a path to a strong stock move higher.”

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