HSBC Upgrades Marvell to Buy

HSBC analyst Frank Lee upgraded Marvell Technology (NASDAQ: MRVL) from Hold to Buy with a price target of $300.00 (from $85.00).

“Upgrade to Buy (from Hold) with revised TP of USD300 (from USD85) as we roll forward to FY28e: We raise our FY27e/FY28e EPS by 21%/61% to USD4.07/USD7.12 due to our bullish optical interconnect revenue estimates, and CXL portfolio-driven ASIC revenue estimates.

We introduce our FY29 estimates in this note. We raise our TP to USD300 (from USD85) applying our FY28 target PE of 42x (rolled forward from FY27e of 26x) to our FY28e EPS of USD7.12.

With c53% implied upside, we upgrade to Buy. We believe the optical interconnect strength and CXL revenue opportunity remain undervalued and can drive upside earnings surprises.”

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